Notes about the Rules Definitions and Interpretations
Definitions and Interpretation1) DefinitionsandInterpretation
ExceptwherethecontextortheexpressprovisionsoftheRulesotherwiserequire:
a) BuildersandDeveloperstowhichtheseRulesapplymaybereferredtoas‘you’,‘your’or‘yourself’;
b) referencestopersonsshallincludethoseofeithersexandalsofirmsoranyotherbody(whethercorporateorunincorporated),trust,stateoragencyofstate(ineachcase,whetherornothavingseparatelegalpersonality);
c) wordsimportingthesingularnumberincludethepluralandviceversa;
d) referencestoanylegislationincludeanystatutoryextension,modificationorre-enactmentofitandregulationsmadeunderit;
e) headingsandsub-headingsareforeaseofreferenceonlyandarenottobetakenintoconsiderationintheinterpretationorconstructionoftheRules;
f) thewords‘build’and‘built’include,whererelevant,buildingworkbywayofconversionand/orrenovationandbuildingworkundertakenonyourbehalf;
g) theexpressions‘including’,‘inparticular’and‘forexample’aretobeconstruedasbeingbythewayofillustrationoremphasisonlyandarenottobeconstruedaslimitingthegeneralityofanyforegoingwords;
h) thefollowingwordsandexpressionsshallhavethefollowingmeanings:
Application for NHBC Cover
ThereturntoNHBCofacompletedNHBCapplicationformtogetherwithpaymentinfullofthefeespayableunderRule13fortheHome(s)youhaveindicatedontheformthatyouwishtoregisterforNHBCCover.
Arbitrator
MeansanArbitratororArbiter.
Associate
AnyBuilderorDeveloperwhoatanytimeissubjecttoanysubstantialdegree,whetherdirectorindirect,tothesameownershipmanagementinfluenceorControlasyou.
Bond
Anagreement(includingbutnotlimitedtoanagreementpursuanttosection38oftheHighwaysAct1980orsection104oftheWaterIndustryAct1991)underwhichyouand/oranAssociateofyouisobligedtoundertake,fundorprocuretheundertakingorfundingofworks(includingbutnotlimitedtotheconstructionofroads,sewers,drains,playareas,vergesand/oropenspaces)andunderorinrespectofwhichNHBCagreestoactasasurety.
Builder
Anyperson,firm,companyorotherorganisationthatbuildsHomes.
Building Regulations
RegulationsmadeundertheBuildingAct1984orwhereapplicabletheBuilding(Scotland)Act2003,oranysimilarlegislationapplicabletotheconstructionofaHome.
Common Parts
Inrelationtoaflatorotherdwelling,CommonPartsmeans:
i. thepartsofabuildingcontainingorprovidingsupporttoit;
ii. anygarage,permanentoutbuilding,retainingwall,boundarywall,externalhandrailorbalustrade,path,drive,gardenareaorpavedareanewlybuiltbytheBuilderatthedateoftheNoticeofCover;
iii. anydrainagesystemservingit;
iv. anyexistinggarage,permanentoutbuilding,retainingwallorboundarywallthatwassoldtothefirstOwnerundertheoriginalcontract.
Conditions
AdditionaltermsandconditionsapplicabletoyoufromtimetotimeasimposedbyNHBCinadditiontotheRules.
Consumer Code for Home Builders
TheConsumerCodeforHomeBuildersschemeoperatedbyConsumerCodeforHomeBuildersLtd,includingtheassociatedrulesfortheindependentdisputeresolutionscheme.
Control
Whenreferringtoabodycorporate,meansthepowerofapersontosecurethattheaffairsofthebodycorporateareconductedinaccordancewiththewishesofthatperson:
i. bymeansoftheholdingofshares,orthepossessionofvotingpower,inorinrelationtothatoranyotherbodycorporate;or
ii. byvirtueofanypowersconferredbytheArticlesofAssociation,oranyotherdocument,regulatingthatoranyotherbodycorporate,anda‘changeofcontrol’occursifapersonwhocontrolsanybodycorporateceasestodosoorifanotherpersonacquirescontrolofit.
Contract
Alegallybindingagreement(orinScotlandmissive)betweenthefirstOwnerandtheBuilder,DeveloperorathirdpartyauthorisedbyNHBCforthepurchase,building,renovationorconversionofaHome.
Damage
PhysicaldamagetoaHomecausedbyaDefect.
Defect
ThebreachofanyNHBCRequirementbytheBuilderoranyoneemployedbyoractingfortheBuilder.FailuretofollowtheguidancesupportinganNHBCRequirementdoesnotamounttoaDefectiftheperformancerequiredbytheNHBCRequirementisachievedbyothermeans.
The Rules that follow are effective from 1st February 2018 (Effective Date). They amend the rules applying to Builders and Developers that were introduced by NHBC on 1 January 2011. Definitions of words with special meanings in the Rules are set out on this page and page 3. Please read the Rules carefully. If you have any questions about them or your registration with NHBC, please contact NHBC Customer Services on 0344 633 1000 or write to us at NHBC House, Davy Avenue, Knowlhill, Milton Keynes MK5 8FP or email [email protected]. Information is also available on www.nhbc.co.uk.
Contents
DefinitionsandInterpretation 2
Registration 4
RegistrationofHomesforNHBCCover 6
HomesnotRegisteredwithNHBC 8
NHBCCover 8
ClaimsandWorkrequiredbyNHBC 10
ClaimsandResolution 11
PowersofNHBC 13
PowersofNHBConspecifiedevents 13
Reviewsandappeals 14
Effectofinstructionsetc. 16
CancellationofRegistration 16
ReinstatementofRegistration 18
ConsumerCodeforHomeBuilders 19
Obligationsundertheseand 19earlierRules
Communicationsandinformation 19
Contractualmatters 21
Appendix 24
For builders and developers registered with NHBC page 3
Developer
Anyperson,partnership,companyororganisationthatarrangesfortheconstructionofHomesorisconcernedinorwithsucharrangements.
Effective Date
IsthedatereferredtointheNotesabouttheRulesonpage2.
Hazardous Site
ASiteoranypartofaSitewhichisinaconditionwhichgivesrisetoanabnormalriskofdamagetoordefectsinhomeswhichareormaybebuiltonit.Itincludes(butisnotlimitedto)aSitewhichinanypart:
i. issubjecttolandslip;
ii. ismade-upground;
iii. ispartofaminingarea,whetherpast,currentorcontemplated;
iv. isofsuchanaturethatthelocalauthorityoranapprovedinspectorhasimposedspecialconditionsregardingfoundations;
v. comprisesclaysoilwhichhas(orhashadwithinthepreviousfiveyears)treesonornearit;
vi. isliabletoflooding;
vii. comprisessoilwithapeatcontentintheground;
viii. isadverselyaffectedbythechemicalcontentoftheground;or
ix. isaffectedbylandfillgasorradon.
Home
Thehouse,bungalow,flatorotherpremisesreferredtoinaSiteNotificationorApplicationforNHBCCover,togetherwith:
i. theCommonParts;
ii. thedrainagesystemforwhichtheOwnerisresponsible;
iii. anynewelectricalfixedwiringandlightingsystem,heatingsystem,airconditioning,smokealarms,wastedisposalunitsorwatersofteningequipmentinthathouse,bungalow,flatorotherpremises;
iv. anygarage,permanentoutbuilding,retainingwall,boundarywall,externalhandrailorbalustrade,path,drive,gardenareaorpavedareabuilt,soldorsuppliedundertheContract.
Homedoesnotincludeanyfence,temporarystructure,swimmingpool,liftoranyelectrical,electronicormechanicalequipment(whetherbuiltinornot)exceptitemslistedin(iii)aboveanditemswhichareincludedintheHomeinordertocomplywiththeBuildingRegulations.
Management Organisation
Anypersonorbodyintendedtoberesponsibleforthemanagement,maintenance,repairorrenewalofaShelteredDwellingorofanycommunalfacilitiesassociatedwithitorforprovidingservicesorfacilitiestotheresidentsoftheShelteredDwellingintheircapacityasresidents,whetherornotthoseservicesorfacilitiesarerelatedtothecareoftheresidents.
NHBC
NationalHouse-BuildingCouncilisacompanylimitedbyguaranteeandregisteredinEnglandandWalesnumber320784.
TheregisteredofficeisNHBCHouse,DavyAvenue,Knowlhill,MiltonKeynes,BuckinghamshireMK58FP.
NHBC Company
AnycompanywithintheNHBCgroupofcompanies,includingNHBCBuildingControlServicesLimitedandNHBCServicesLimited.
NHBC Cover
Thecoverprovidedortobeprovided(asthecontextmayrequire)foraHomebyNHBC(oritssubsidiariesfromtimetotime)andtheBuilderunderBuildmark,BuildmarkChoice,BuildmarkLink,BuildmarkSolo,BuildmarkConnectoranysimilarproductfromtimetotime(asapplicable).
NHBC Offer Documents
IsdefinedinRule20)a)i)
NHBC Offer Notification
IsdefinedinRule20)a)ii)
NHBC Requirements
ThemandatoryrequirementsinconnectionwithbuildingandassociatedmattersadoptedbyNHBCandinforceeither:
i. inthecaseofaHomewithnewlybuiltfoundations,whentheconstructionofthefoundationsisbegun;or
ii. inanyothercase,whenconstruction,conversionorrenovationoftheHomeisbegunbyoronbehalfoftheBuilder.
NHBC Sheltered Housing Code
TheNHBCShelteredHousingCodeadoptedbyNHBCandinforceeither:
i. inthecaseofaHomewithnewlybuiltfoundations,whentheconstructionofthefoundationsisbegun;or
ii. inanyothercase,whenconstruction,conversionorrenovationoftheHomebyoronbehalfoftheBuilderisbegun.
TheShelteredHousingCodeisnotmandatoryinScotland.
Notice of Cover
Asapplicable:
i. acertificateornoticeissuedbyNHBCstatingthataHomeappearstohavebeendesignedandconstructedsubstantiallyinaccordancewithNHBCRequirements;or
ii. acertificateornoticeissuedbyNHBCfollowingapre-handoverinspectionandstatingorindicatingthatNHBCiswillingtoprovideNHBCCover;or
iii. acertificateornoticeissuedbyNHBC(butnotincludinganycertificateorstatementgivenfollowingrepairstoaHomeunderNHBCCover)statingthatworktoaHomeappearstohavebeencarriedoutinasatisfactorymanner;or
iv. aFinalCertificateissuedundertheBuildingAct1984(EnglandandWalesonly);or
v. aCompletionCertificateissuedundertheBuilding(Scotland)Act2003.
Owner
TheprospectivefirstownerofaHometowhomNHBCandaBuildermakeanofferofNHBCCoverforthatHome.Afterthatitmeans:
i. thepersonidentifiedastheowneroftheHomeonthecompletedformforacceptanceoftheNHBCCover;or
ii. anylaterowner,mortgageeinpossessionorheritablecreditorinpossessionoftheHome.
IfthereisuncertaintyastotheidentityoftheownerofaHomeatanytime,NHBCmayinitssolediscretiondecide,forthepurposesoftheNHBCCoverfortheHomeandtheRules,whotheowneris.
Product Plot Schedule
TheformsenttoyoubyNHBCinresponsetoaSiteNotification,inorderforyoutoprovidedetailsofallplannedplots.
Register
TheRegisterofBuildersandDevelopersmaintainedbyNHBCinEnglandandWales,Scotland,NorthernIrelandandtheIsleofManrespectively.
Registration
TheentryofaBuilderorDeveloperontheRegister.‘Registered’referstoBuildersandDeveloperswhoseregistrationiseffective(thatistosayithasnotbeencancelledorsuspended).
Resolution Service
ThedisputeresolutionserviceprovidedbyNHBCunderNHBCCovertoassistwiththeresolutionofdisputesbetweenOwnersandBuildersorDevelopersinconnectionwiththeobligationsofBuildersandDevelopersunderNHBCCover.
Rules
Meansthetermsandconditionssetoutinthisdocument.
Sheltered Dwelling
Adwellingthatispurposebuiltorconvertedforresidencebyelderlypeopleandwhichformspartofaschemeofgrouped,self-containedaccommodationprovidedwithapackageofestatemanagementservices.
Site
Anareaoflandthatiscoveredbyasingledetailedplanningconsentorseriesofconsentsrelatingtocontinuousdevelopment.
Site Notification
ThesupplyofdetailstoNHBC(ontheformsuppliedbyNHBC)ofHomestobeconstructedonaSiteandofotherfactorsaffectingorrelatedtothatSitewhichmayberequiredbyNHBC.
Structure
Thefoundationsofthehouse,bungalow,flatorpremisesandofanygarageorpermanentoutbuildingandthestructuralload-bearingpartsofitsfloors,wallsandrooftogetherwithanyretainingwallsnecessaryforitsstability.Structureincludesthefoundationsandanystructuralload-bearingpartsofanyCommonParts.
Year
Meansaperiodof12consecutivemonthscommencingon1stApril.
NHBC Rules for builders and developers registered with NHBC
Registration
Details of the Register
2) DetailsoftheRegistermaybeobtainedfromNHBCduringnormalbusinesshours.
Becoming Registered3) Youwill,onapplication,beconsideredforRegistrationwithNHBCifyouareaBuilderorDeveloperwiththeabilityand
commitmenttobuildordevelophomesinaccordancewithNHBCRequirements.
Registration and Conditions of Registration4)
a) InresponsetoyourapplicationforRegistration,NHBCmaydecide: i) tograntyourapplicationforRegistrationunconditionally; ii) tograntyourapplicationsubjecttoConditions; iii) todeferconsiderationofyourapplicationpendingfurtherenquiriesortheprovisionoffurtherinformation; iv) torejectyourapplication.
b) NHBCwillgiveyouwrittennoticeofitsdecision.
Conditions of Registration5)
a) NHBCmaymakeyourRegistrationsubjecttoConditions:
i) whenitdealswithyourapplicationforRegistration;
ii) atanytimeduringyourRegistration.
b) NHBCmayrevokeoramendanyConditionstowhichyourRegistrationissubjectatanytimeduringyourRegistration.
c) Conditionsmayincludethefollowing:
i) alimitonthenumberofplotsinrespectofwhichyoumaysubmitaSiteNotificationoranApplicationforNHBCCover;
ii) arequirementthatyoupayafurtherchargetoNHBCinrespectofanyHomeforwhichyouhavesubmittedaSiteNotificationoranApplicationforNHBCCover(inadditiontoanychargeorsurchargepayableunderRule14);
iii) arequirementtodischarge,ortoprovideNHBCwithreasonablesecurityforthedischargeof,anyobligationorliabilitytowhichyouoranyAssociateisormaybecomesubjectundertheRulesoranyConditionsimposedbyNHBCundertheRules,underanyotherapplicablerulesorunderanyNHBCCover;
iv) arequirementtoindemnifyNHBC,ortoprovideNHBCwithreasonablesecurityagainstanyliabilitywhichithasincurredormayincurbyreasonofyouractsoromissionsorthoseofanyAssociate;
v) arequirementtoreimburseNHBCthewholeorareasonableproportionofanypaymentwhichNHBChasmadeorisliabletomakeorhasagreedtomakebyreasonoftheactsoromissionsofanyotherBuilderorDeveloperinrelationto:a anyHomeinrespectofwhichyousubmittedaSiteNotificationoranApplicationforNHBCCover;b anyotherHomeonthesameSiteasthatHome;c thecompletionofanyworkson,servingorconnectedwiththatSiteinrespectofwhichNHBChas
agreedtoactasasuretyorprovideanindemnityorguaranteeinfavourofathirdparty.
d) IfNHBCdecidestoadd,amendorrevokeConditionsapplicabletoyourRegistrationNHBCwillgiveyouwrittennoticeofthatdecisionandthatdecisionwilltakeeffect21daysafteryoureceivethatnoticeunlessyouexerciseyourrightsunderRule31).
e) IfNHBCrequiresyoutoprovideitwithsecurity,youmustprovidethatsecurityintheformspecifiedbyNHBC.NHBCmayrequireyoutoprovideitwithsecurity:
i) intheformofabondexecutedbyabank,insurancecompanyorsimilarentityapprovedbyNHBC;
ii) intheformofenforceableundertakingsorguaranteesgiventoNHBCbyoneormoreofyourdirectorsorshareholdersorbyanyotherthirdpartyorthirdpartiesspecifiedbyNHBC;
iii) inanyotherformitmayreasonablyspecify.
For builders and developers registered with NHBC page 5NHBC Rules for builders and developers registered with NHBC
Subscription
6)
a) YoumustpaytheannualRegistrationsubscriptionspecifiedbyNHBCforeachYear(orpartthereof)inwhichyouareRegistered.
b) IfyourRegistrationissuspendedorcancelledatanytimeduringaYearyouwillnotbeentitledtoawaiverorrefundofanypartofthesubscriptionpaidorpayableunderRule6)a)forthatYearandyouwillremainliabletopayNHBCanysubscriptionpaymentsthatremainunpaidatthedateofsuspensionorcancellation.
Application of the Rules7)
a) TheRulesapplyfromtheEffectiveDatetoBuildersandDevelopersRegisteredontheEffectiveDateandfromthedateofapplicationtoBuildersandDevelopersthatapplyforRegistrationaftertheEffectiveDateandtheycontinuetoapplyuntilsuchtimeasyoubothceasetobeRegisteredandceasetohaveanyactualorcontingentliabilitiesunderorinconnectionwiththeRules,anyConditions,anyNHBCCoverand/oranyBonds.
b) AnyConditionsapplicabletoyourRegistrationwillapplytoyouinadditiontotheRulesuntiltheyarerevokedoramendedbyNHBC.
c) IntheeventofanyconflictorconfusionbetweenaprovisionintheRulesandanyCondition,theConditionshallprevail.
Cover under NHBC or Other Home Warranty Schemes8)
Thisruleisnotapplicable.NHBCregisteredbuildersanddevelopersarefreetoregisterwithanyotherprovidersofnewhomewarrantyproductsandusethenewhomewarrantyproductsofthesealternativeproviders,insteadofNHBC’snewhomewarranty.
Builders and Developers9)
a) IfyouareRegisteredonlyasaDeveloperyoumustemployaRegisteredBuilderasthemaincontractortobuildanyHomeforwhichyousubmitaSiteNotificationoranApplicationforNHBCCover.
b) IfyouareRegisteredasaBuilder,youmayalsoactasaDeveloperandyoumustthencomplywiththeRulesastheyapplytoaDeveloper.
Building Standards10)
a) YoumustensurethateveryHomeforwhichyousubmitaSiteNotificationoranApplicationforNHBCCoverisdesignedandbuiltinaccordancewiththeapplicableNHBCRequirements.
b) IfNHBCBuildingControlServicesLimitedisappointedbyyoutoactastheApprovedInspector(inEnglandandWales)foranyHome,youmustcomplywiththeapplicabletermsandconditionsasnotifiedtoyoubyNHBCBuildingControlServicesLimited.Note:foreaseofreferenceacopyofthetermsandconditionsapplicableasattheEffectiveDateisincludedinanappendixtothebookletcontainingtheseRules.
c) IfanNHBCCompanyisappointedbyyoutoactastheCertifier(inScotland)foranyHomeyoumustcomplywiththeapplicabletermsandconditionsasnotifiedtoyoubytheNHBCCompany.
Specialist professional information11)
a) InScotland,NHBCmayrequireyoutoprovidespecialistinformationfromconsultantsofaparticularprofession.Ifso,youmustadvisethemofNHBC’sinvolvementandifrequestedbyNHBCensurethattheyareboundtoNHBCinrespectoftheirdutyofcareasiftheyhadbeeninstructedbyNHBCinthefirstinstance.
b) NHBCmayrequireyoutohavetheStructureofaHomedesignedandinspectedduringconstructionbyanindependentprofessionalacceptabletoNHBC,inwhichcaseyoumustfollowanyinstructionsgivenbythatprofessional.
Registration for NHBC Cover
Requirement to submit Site Notifications and Applications for NHBC Cover
Stage One: Site Notification
12)
a) YoumustsubmittoNHBCaSiteNotificationforeachhomebuiltortobebuiltbyyou,oronyourbehalf,tobesold
byyoutothefirstowner.
b) YoumustsubmittoNHBCaSiteNotificationforeachhomebuiltortobebuiltbyyou,oronyourbehalf,onland
ownedortobepurchasedbythefirstowner.
c) YoumaysubmittoNHBCaSiteNotificationforeachhomebuiltortobebuiltbyyouonbehalfofathirdparty
authorisedbyNHBCtobesoldbythethirdpartytothefirstowner.
d) IfyousubmitaSiteNotificationunderRules12)a),b)orc)youmust:
i) includeintheSiteNotificationparticularsofallofthehomesbuiltortobebuiltorsoldbyyouoronyour
behalfattherelevantSite;and
ii) ifaftersubmissionoftheSiteNotificationanyofthenotifiedparticularschange,youmustpromptlynotify
NHBCofthechanges.
e) Rules12)a)toc)applyifyouacquireahomeorSitewhichispartiallybuiltandinsuchcasesyoumustsubmitto
NHBCaSiteNotificationtogetherwithalocationplanforalloftheplannedhomesontheSitebeforeanyfurther
substantialbuildingworkiscarriedouttothehomeand/orSite.
f) EachSiteNotificationthatyouarerequiredtosubmitmustbereceivedbyNHBCfullycompletedatleast:
i) 8weeksbeforeworkstartsonaHazardousSiteorwherenon-conventionalorcomplexconstructionmethods
aretobeused;
ii) 28daysbeforeworkstartsinanyothercase.
g) FollowingreceiptofaSiteNotification,subjecttoRule12)f)i)NHBCwillsendyouaProductPlotSchedulewhich
mustbeusedunderStageTwo(Rule13)below.
h) Normally,aquotationforNHBC’schargesforNHBCCoverandotherserviceswillbeissuedtoyoubasedonthe
informationyouprovideinaSiteNotification.
i) NHBCmayacceptaSiteNotificationsubjecttoConditionsorNHBCmayrejectit.NHBCwillgiveyoureasonsin
writingifaSiteNotificationisacceptedsubjecttoConditionsorisrejected.NHBCmayinitsabsolutediscretion
giveorwithholditsauthorisationtoathirdpartyreferredtoinaSiteNotificationmadeunderRule12)c).
j) YoumaynotsubmitaSiteNotificationifNHBCinstructsyounottodoso.
Stage Two: Application for NHBC Cover
13)
a) Youmust:
i) atleast21daysbeforeworkstartsonaHome;or
ii) beforeyouenterintoaContractforaHome;
whicheveristheearlier,makeanApplicationforNHBCCoveraccompaniedbypaymenttoNHBCofthecharges
forNHBCCoverandanyotherservices(including,ifyouappointNHBCBuildingControlServicesLimitedasthe
ApprovedInspector(inEnglandandWales)oranNHBCCompanyasCertifier(inScotland)thechargesforthose
services)asadvisedtoyoubyNHBCforeachHomeforwhichyouhavesubmittedaSiteNotification.
b) NHBCmaycancelanApplicationforNHBCCoverandtheNHBCCoverforanyHomeif:
i) constructionisnotstartedwithinoneyearofthedateoftheApplicationforNHBCCover;
ii) inNHBC’sopinionNHBCwillnotbeabletoissueaNoticeofCoverwithintwoyearsofthedateofthe
ApplicationforNHBCCover;
iii) theHomeissoldtoathirdparty(notbeingthefirstOwner)otherthanacompanywithinyourgroup
ofcompanies.
c) NHBCmayacceptanApplicationforNHBCCoversubjecttoConditions,orwithoutConditionsorNHBCmayreject
it.NHBCwillgiveyoureasonsinwritingifanApplicationforNHBCCoverisacceptedsubjecttoConditionsoris
rejected.
d) YoumaynotsubmitanApplicationforNHBCCoverifNHBCinstructsyounottodoso.
NHBC Rules for builders and developers registered with NHBC
Charges for NHBC Cover and services
14)
a) NHBCmayatitssolediscretionagreetoacceptaSiteNotificationand/oranApplicationforNHBCCoversubmitted
afterthedatesrequiredbyRules12)and13)inwhichcaseNHBCshallbeentitledto:
i) chargeinterestunderRule54)ontheapplicablechargesfortheperiodstartingonthelastdateuponwhich
thechargesshouldhavebeenpaidaccordingtoRule13)andendingwhentheyarepaid;and
ii) makeafurtherchargeforlatesubmission.
b) NHBCmayre-assessthechargesforNHBCCoverforaHomeatanytimeiftheactualsellingpriceoftheHomeis
higherthantheanticipatedsellingpriceuponwhichNHBCinitiallycalculatesthechargesforNHBCCover,andyou
mustpayNHBCthedifferencebetweenthechargesthatyouhavealreadypaid(orbecomeliabletopay)andthe
re-assessedchargesifNHBCasksyoutodoso.
c) NHBCmayre-assessthechargesforNHBCCoverforaHomeatanytimeifaftersubmissionofaSiteNotification
anyofthenotifiedparticularschange(whetherornotyounotifythechangestoNHBC)orarefoundtobe
incorrect,andyoumustpayNHBCthedifferencebetweenthechargesthatyouhavealreadypaid(orbecome
liabletopay)andthere-assessedchargesifNHBCasksyoutodoso.
d) ThechargespayablebyyouunderRules13)and14)willnotbewaived,returnedorrefundedunderany
circumstances(includingwhenNHBCCoverisnotprovidedoriscancelledforanyreason).
e) NHBCmaycancelanApplicationforNHBCCoverortheNHBCCoverforanyHome(andonbehalfofNHBCBuilding
ControlServicesLimitedanyInitialNoticeoronbehalfofanyNHBCCompanyanyCertificateofDesign)ifthe
paymentofanychargesthatyouarerequiredtopaytoNHBC,NHBCBuildingControlServicesLimitedorany
otherNHBCCompanyisnotmadeinfullandattheduetimeandinparticularwherearrangementsaremadefor
thepaymenttobemadebychequeordirectdebitifthechequeordirectdebitisdishonoured.
Testing and inspection
15)
a) NHBCmayinspectandcarryouttechnicalinvestigationsofanyHomeinamannerandatafrequencytobe
determinedbyNHBC.Forthepurposesofsuchinspectionsandinvestigations,youmustcarryoutanyworkor
teststhatNHBCmayrequireyoutocarryoutandprovideanyfacilities,documentsorinformationthatNHBC
mayrequireyoutoprovide.NHBC’sinspectionsandtechnicalinvestigationsareforthepurposeofenablingNHBC
todecidewhethertoprovideNHBCCoverforaHome.AnyinformationsharedwithyouarisingfromNHBC’s
inspectionsandtechnicalinvestigationsinnowayrelievesyouofyourobligationsunderRule10)a)todesignand
buildeachHomeinaccordancewiththeapplicableNHBCRequirements.
b) YoumustensurethatNHBCisnotifiedinadvanceattheappropriatestagesofconstructionofeachHome,to
enableNHBC’sinspectionsandtechnicalinvestigationstotakeplaceattheappropriatetime.Youmustalso
notifyNHBCassoonasyoubecomeawareofanyproblemconcerninganyHomethatcouldresultinitnotbeing
completedinaccordancewithNHBCRequirements.
c) IfNHBCBuildingControlServicesLimited(`NHBC-BCS’)isappointedbyyoutoactasthebuildingcontrolbody
foranyHome,wemaycarryoutinspectionsandtechnicalinvestigationsonbehalfofNHBC-BCS.However,these
serviceswillbeprovidedundertheseparateapplicabletermsandconditionsthatapplytothem(seeRule10)b)).
Hazardous Sites and Non-Conventional Methods of Construction
16)
a) IfaHomeistobebuiltonaHazardousSiteorwherenon-conventionaland/orcomplexconstructionmethodsare
tobeused:
i) youmust(withinthetimelimitsreferredtoinRule12)f)i))(8weeksbeforeworkstarts)submitwiththeSite
Notificationthedesigndetailsshowinghowthehazards,non-conventionalconstructionmethodsand/or
complexconstructionmethodsaretobedealtwithandinparticularyoumustshowtoNHBCindetail
(bysubmissionofdrawings,calculations,soilinvestigations,environmentalreportsandanyotherrelevant
information)howhazards,non-conventionalconstructionmethodsand/orcomplexconstructionmethods
aretobedealtwithsoastoenablethebuildingoftheHometobecompletedinaccordancewith
NHBCRequirements;
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 7
ii) youmustprovideNHBCwithanyinformationpertainingtotheHomeandtherelevantSitethatNHBCmay
reasonablyrequestfromtimetotime.
b) NHBCmaycancelanApplicationforNHBCCoverandtheNHBCCoverforanyHomeonthebasisofinformation
submittedornotsubmittedbyyouoronyourbehalfunderRule16)a)ifNHBCisnotsatisfiedthatbuildingofthe
HomewillbecompletedinaccordancewithNHBCRequirements.
Homes not registered with NHBC
Evidence of other warranty and insurance cover
17) Thisruleisnotapplicable.
Release from the Rules
18)
a) YoumaymakeawrittenapplicationtoNHBCtobereleasedfromyourobligationsunderRules9)to16)inclusivein
connectionwithaparticularhomeif:
i) thathomeistobedesignedorconstructedunderthesupervisionofanarchitectorbuildingsurveyor
appointedbythefirstownerofthehomeontermswhicharethesameasorsimilartothosecontainedinthe
appropriaterecommendationsoftheRIBAfortheappointmentofArchitects;or
ii) youhaveenteredintoorwillenterintoanagreementwiththefirstownerofthehomewhichlimits
(andwhichmakescleartothefirstownerthelimitsof)yourobligationsinrespectofthedesignor
constructionofthehome.
b) AsaConditionofgrantinganapplicationmadeunderRule18)a)NHBCmayrequirewrittenevidenceofthe
appointmentofthearchitectorqualifiedbuildingsurveyorand/orofthetermsofanyrelevantagreement.
c) IfanapplicationunderRule18)a)isgrantedyoumustinformthefirstownerofthehomeinwritingthattheHome
willnothavethebenefitofNHBCCover.
d) IfanapplicationunderRule18)a)isnotgrantedbyNHBCyoumustcontinuetocomplywithyourobligationsunder
theRulesinconnectionwiththerelevanthome.
NHBC Cover
Authority to offer NHBC Cover
19) BysubmittinganApplicationforNHBCCoverforaHomeyouirrevocablyauthoriseNHBCtooffertocommityouto
theBuilder’sobligationswhichformpartoftheNHBCCover(subjecttoitstermsandconditions)fortheHomeandto
commityoutothoseobligations.
Delivery of Documents
20)
a) AfterreceivinganApplicationforNHBCCoveraccompaniedbypaymentoftherelevantchargesNHBCwill
normally,foreachoftheHomesspecifiedintheApplicationforNHBCCover,either:
i) sendyouthedocuments(includinginstructionsforuse,offerofNHBCCover,acceptanceform,termsand
conditionsofNHBCCoverandanyconditionstowhichtheofferissubject)(‘NHBCOfferDocuments’)forthe
offerofNHBCCoverforeachsuchHome;or
NHBC Rules for builders and developers registered with NHBC
For builders and developers registered with NHBC page 9
ii) notifyyouinwriting(‘NHBCOfferNotification’)thattheNHBCOfferDocumentsfortheofferofNHBCCover
foreachsuchHomecanbeaccessedelectronicallythroughtheNHBCwebsite.
b) ForeachHomespecifiedineachApplicationforNHBCCoveryoumake,youmust,followingreceiptoftheNHBC
OfferDocumentssenttoyouasreferredtoinRule20)a)i)ortheNHBCOfferNotificationsenttoyouasreferred
toinRule20)a)ii),withoutdelay(andwherepossiblebeforethefirstOwnerentersintoaContractfortheHome),
delivertheNHBCOfferDocumentsortheNHBCOfferNotification(asapplicable)directlytothefirstOwner,or
directlytothefirstOwner’sconveyanceriftheyhaveappointedone,andnottoanyoneelseunless:
i) NHBCinstructsyounotto;
ii) theApplicationforNHBCCoverand/ortheNHBCCoverfortheHomereferredtointheNHBCOffer
DocumentsortheNHBCOfferNotificationiscancelledbyNHBCundertheRules(inparticularRule13)b),14)
e),16)b)or43)c));
iii) yourRegistrationissuspendedorcancelled(inwhichcaseRule43willapply);or
iv) theHomereferredtointheNHBCOfferDocumentsortheNHBCOfferNotificationhasbeen,isbeingoristo
beoccupiedasadwellingbeforebeingsold(inwhichcaseyoumustinformNHBCofthefactandperiodof
occupationoftheHomeasadwelling,howeverthiswillnotmakeyoutheOwnerandyouwillnotbeentitled
tomakeaclaimunderanyNHBCCoverfortheHome).
c) InanyofthecircumstancessetoutinRules20)b)i)to20)b)iii),youmustreturntoNHBCanyNHBCOffer
DocumentsandNHBCOfferNotificationssenttoyouunderRule20)a)thatarewithinyourpossessionandtake
anystepsthatNHBCmayreasonablyrequireinordertorecoverpossessionandreturntoNHBCanysuchNHBC
OfferDocumentsandNHBCOfferNotificationsthatarenotwithinyourpossession.
d) InthecircumstancessetoutinRule20)b)iv),youmustinformthefirstOwner,orthefirstOwner’sconveyancerif
theyhaveappointedone,ofthefactandperiodofoccupationoftheHomeasadwelling.
Separate charges for NHBC Cover
21) YoumustnotmakeachargetothefirstOwnerforanyNHBCCoverorNHBCserviceunlessthatchargeisincluded(at
cost)inthepricepayableundertheContractfortheHomeorNHBCgivesyouwrittenpermission.
Obligations under NHBC Cover
22) YoumustfulfilyourobligationsunderanyNHBCCovertowhichyouareaparty,infullandattheduetime.
Liability of Builders and Developers under NHBC Cover
23)
a) IfyousubmitaSiteNotificationandApplicationforNHBCCoveryouwillbeliabletotheOwneroftheHomeforthe
Builder’sobligationsundertheresultingNHBCCover.
b) IfyouareRegisteredasaBuilderandyouareinvolvedinthedesignand/orconstructionofaHomeforwhicha
DevelopersubmitstheSiteNotificationandApplicationforNHBCCover,theniftheDeveloperfailstofulfilthe
Builder’sobligationsundertheNHBCCoverandinconnectionwiththosemattersofdesignandconstructionin
whichyouwereinvolved:
i) youwillindemnifyNHBCondemandinrespectofanysumsthatNHBCisentitledtoclaimfromtheDeveloper
undertheRulesforthatHome;and
ii) atNHBC’srequestandyourexpense,youmustfulfiltheBuilder’sobligationsundertheNHBCCoverfor
thatHome.c) NothinginRule23)b)orinNHBC’sexerciseofitsrightsunderthatRuleinanywayrelievestheDeveloperofits
obligationsundertheRulesoranyNHBCCoverinrespectoftheHomeconcerned.
Notices of Cover
24)
a) FollowingitsinspectionsandanytechnicalinvestigationsofaHomeunderRule15)NHBCmayinitssolediscretion
(withoutbeingobligedtodoso)issueaNoticeofCoverinrespectoftheHome.
b) TheissueofaNoticeofCoverforaHomeisnotawarranty,representationorguaranteetoyou,theOwnerorany
otherpersonthatconstructionoftheHomewascompletedfullyinaccordancewithapplicableNHBCRequirements
anddoesnotinanywayrelieveyouofyourobligationsunderRule10)a)tocompletetheconstructionoftheHome
inaccordancewithapplicableNHBCRequirements.
NHBC Rules for builders and developers registered with NHBC
c) NHBCmayinitssolediscretionagreeinwritingthatyouneednotcomplywithalloftheapplicableNHBC
RequirementsconcerningthedesignandconstructionofaparticularHome,inwhichcaseyoumustobtainthefirst
Owner’swrittenagreementtoacceptthatnon-compliance.Insuchcircumstances,NHBCmayinitssolediscretion
issueaNoticeofCoverinrespectoftheHomecontaininganendorsementexcludingtherelevantitemsfromcover.
Withholding a Notice of Cover
25) IfNHBCwithholdstheissueofaNoticeofCoverinrespectofaHome,itwillgiveyouwrittennoticeofitsreasonsfor
doingso.
Rights when a Notice of Cover is withheld26) IfyouconsiderthatNHBCisunreasonablywithholdingaNoticeofCover,youmaygiveNHBCwrittennoticethatyou
wantthatdisputetobereferredtoarbitrationunderRule55)bygivingwrittennoticetoNHBCwithin28daysofyourreceiptofawrittennoticefromNHBCunderRule25).
Claims and Work required by NHBC
Tests, investigations and work required by NHBC
27)
a)
i) NHBCmaygiveyouwrittennoticeoftestsand/orinvestigationsthatNHBCrequiresyoutocarryoutorhave
carriedoutinordertoinvestigateanysuspectednon-compliancewithNHBCRequirements.
ii) NHBCmaygiveyouwrittennoticeofworkthatNHBCrequiresyoutocarryoutorhavecarriedoutinorderto
remedyanynon-compliancewithNHBCRequirements.
b) FollowingreceiptofanoticeunderRule27)a)youmust:
i) informNHBCinwritingwithinseven(7)daysofanydifficultiesthatmaypreventthecompletionofthe
tests,investigationsand/orworkspecifiedinthenoticebythedaterequiredandNHBCmay(initsabsolute
discretion)agreetovarythatdate;
ii) atyourownexpensecarryoutorhavecarriedoutthetestsand/orinvestigationsspecifiedinthenotice
andreporttheoutcomeorresultstoNHBCinwritingbythedatespecifiedinthenoticeorbyanylaterdate
agreedunderRule27)b)i)or,ifnodatewasspecifiedoragreed,withinareasonableperiodoftime;
iii) atyourownexpensecarryoutorhavecarriedoutanyworkspecifiedinthenotice(togetherwithany
additionalworknecessaryinconnectionwiththeworkspecifiedinthenotice)sothattheHomecomplieswith
theapplicableNHBCRequirementsbythedatespecifiedinthenoticeorbyanylaterdateagreedunderRule
27)b)i)or,ifnodatewasspecifiedoragreed,withinareasonableperiodoftime.
c) Ifyoudonotcompleteanytests,investigationsand/orworkthatyouarerequiredtocarryoutorhavecarriedout
underRules27)a)and27)b)withinthetimeallowed,NHBCmay(initsabsolutediscretion):
i) haveappropriatetests,investigationsand/orwork,carriedout;or
ii) assessthecostsofcarryingoutsuchtests,investigationsand/orworkandpaythatsumto
theOwner.
d) If,initsabsolutediscretion,NHBCdeemsitappropriatetodoso(forinstancebecauseof(i)thehistoryofany
dealingsbetweenyouandtheOwnerand/orNHBC(ii)NHBC’sassessmentofanyworkpreviouslycarriedoutby
you(iii)yourfinancialpositionor(iv)anemergency)NHBCmay,insteadoforinadditiontoservinganoticeunder
Rule27)a):
i) arrangeitselffortests,investigationsand/orworktobecarriedout;or
ii) assessthecostsofhavingsuchtests,investigationsand/orworkcarriedoutandpaythatsumtotheOwner.
e) NHBCmayservemorethanonenoticeunderRule27)a)inrespectofaHomeandwhereNHBCdoesso,anyearlier
noticeshallremaininforce,excepttotheextentthatanylaternoticeiseitherexpresslystatedtosupersedean
earliernoticeorthecontextrequirestoanyextentthatalaternoticesupersedesanearliernotice.
NHBC Rules for builders and developers registered with NHBC
f) IfNHBCexercisesitsrightsunderRules27)c)ord)NHBCwillnotifyyouinwritingandfollowingserviceofsucha
noticeyoumustnotundertakethetests,investigationsand/orworkreferredtointhenoticeyourself,norarrange
foranyotherpersontoundertakethem.
g) IfNHBCexercisesitsrightsunderRules27)c)ord)NHBCwillbeentitledtorequireyoutostopworkontheHome
concerned(asspecifiedinthenotice,alongwithparticularsoftheworkthatmustbestopped)andfollowing
serviceofthatnotice:
i) youmuststopworkontheHomeasrequiredunderthenotice;exceptthat
ii) youmusttakeallstepsnecessarytoensurethattheHomeissecureandwatertight.
h) Wheretests,investigationsand/orworkarerequiredtobecarriedouttoaHomeunderRule27)youmustat
yourexpense:
i) alloworobtainaccesstothepremisesreferredtointhenoticeforyou,NHBCand/oranycontractorsforthe
purposeofallowingtests,investigationsand/orworktobedone;
ii) arrangeforanydamagetotheHomeresultingfromthecarryingoutoftests,investigationsand/orworktobe
repairedandfortheaffectedpartsoftheHometobere-decoratedandleftinacleanandtidycondition;
iii) arrangefortheremovalandstorageoftheOwner’spossessions,and/orfortheprovisionofsuitable
alternativeaccommodationfortheOwnerand/oranyoneelsewhonormallylivesintheHomewiththe
Owner’spermission.
Alternatively,inthecaseofRules27)h)ii)and27)h)iii)NHBCmayeithermakeanyoftheabovetests,
investigations,workand/orarrangementsatyourexpenseor,initsabsolutediscretion,assessthecostofmaking
anyoftheabovetests,investigations,workand/orarrangementsandpaythatsumtotheOwner.
i) IfNHBCexercisesitsrightsunderRule27)youmustimmediatelyondemand(andwithoutdeductionorsetoff)
indemnifyNHBCinrespectofallcostsandexpensesincurredbyNHBCinconnectionwithdoingso.Suchcostsand
expensesmayincludeadministrationcosts,thecostofsettlementofclaimsunderNHBCCoverandthecostsand
disbursementsincurredinobtainingprofessionaladviceandassistance.
j) NHBCmayapplyRule27)atanytimeinconnectionwithanyHomeandanyobligationorliabilitythatyouhave
undertherelevantNHBCCoverand/ortheRulesandwhichyouhavenotdischargedinfullandattheduetime.
k) IfyoudisputeanyactiontakenbyNHBCunderRule27)thatdisputemaybereferredtoarbitrationsubjecttoand
inaccordancewithRule55).Ifadisputeisreferredtoarbitration:
i) NHBCshallcontinuetobeentitledtocarryoutormakeapaymentinrespectofanytests,investigationsand/
orworkspecifiedinanoticeservedunderRule27);and
ii) theArbitratorwillnothavethepowertoorderyoutocarryoutanytests,investigationsand/orwork.
Claims and Resolution
Investigation of claims and complaints by NHBC
28)
a) IfanOwnermakesanyclaimorcomplainttoNHBCinrespectofaHome,NHBCmayundertakeitsowntestsand/or
investigationsandmayrequirethatyouattendand/orassistNHBCwiththosetestsand/orinvestigations(whether
ornotyouareobligedtorespondtotheclaimorcomplaintundertheNHBCCoverfortheHome).
b) IfNHBCrequiresyoutoattendand/orassistunderRule28)a),NHBCwillnotifyyouinwriting(settingout
particularsoftheHomeandthedateandtimeoftheplannedtestsand/orinvestigations)andfollowingserviceof
thatnotice:
i) youmustatyourownexpensemakearepresentativeavailabletoattendand/orassistNHBCwiththosetests
and/orinvestigations;
ii) youmustalloworprocureaccesstotherelevantpremisesforNHBCanditscontractorsforthepurposeof
allowingNHBCoritscontractorstocarryoutthetestsand/orinvestigations.
For builders and developers registered with NHBC page 11NHBC Rules for builders and developers registered with NHBC
c) Followingtestsand/orinvestigationscarriedoutunderRule28)a)NHBCwill:
i) notifyyouinwritingoftheoutcomeofthetestsand/orinvestigations;
ii) notifyyouofthecostsandexpensesincurredbyNHBCinconnectionwiththetestsand/orinvestigations.
Suchcostsandexpensesmayincludeadministrationcostsandthecostsanddisbursementsincurredin
obtainingprofessionaladviceandassistance.
d) FollowingreceiptofanoticeunderRule28)c)ii)youmustimmediatelypaytoNHBC(withoutdeductionorsetoff)
anamountequaltotheamountofthecostsstatedinthenotice,unless:
i) theoutcomeofallofthetestsand/orinvestigationsisthattherehasbeennofailurebyyoutocomplywith
yourobligationsundertherelevantNHBCCoverandRulesinconnectionwiththematterstestedand/or
investigated;or
ii) withNHBC’swrittenagreement(initsabsolutediscretion)withinareasonabletimeatyourownexpenseyou
carryoutalloftheworkthatNHBCwouldotherwisehavetopayfororcarryoutundertherelevantNHBC
Coverinconnectionwiththeclaimorcomplaint.
e) NHBCmayapplyRules28)a)to28)d)atanytimeinconnectionwithNHBC’sresponsetoanyclaimorcomplaint
madeinconnectionwithNHBCCoverforaHomebuiltorsoldbyyouoronyourbehalf.
Resolution Servicef) IfanOwnermakesaclaimorcomplainttoNHBCunderorinconnectionwithNHBCCoverandNHBCdecidesto
providetheResolutionServicethen:
i) Rules27)and28)willapplyinrespectofanytests,investigationsand/orworkwhichNHBCrequiresyouto
carryoutorarrangeand/orwhichNHBCcarriesoutorarranges;
ii) NHBCmaychargeyouafeeforprovidingtheResolutionService.
g) NHBCmayapplyRule28)f)atanytimeinconnectionwithNHBC’sresponsetoanyclaimorcomplaintmadein
connectionwithNHBCCoverforaHomebuiltorsoldbyyouoronyourbehalf.
Recovery of Costsh) InadditiontoNHBC’sotherrightsundertheRules,ifNHBCincursanycosts:
i) underanyNHBCCoverasaresultoforinconnectionwithyourfraud;
ii) underanyNHBCCoverasaresultoforinconnectionwithyourinsolvency;
iii) underanyNHBCCoverasaresultoforinconnectionwithanyArbitrationAward,CourtJudgmentorCourt
Orderwithwhichyoufailtocomply;
iv) underanyNHBCCoverasaresultoforinconnectionwithyourfailuretomeetyourobligationsunderthat
NHBCCover;
v) asaresultoforinconnectionwithyourfailuretomeetyourobligationsundertheRules;(ineachcase
whetherornotnoticeoftherelevantfactsormatterswasgivenbyanOwner)NHBCmaynotifyyouinwriting
ofthecostsincurred(includingadministrationcosts,thecostofsettlementofclaimsunderNHBCCover
andthecostsanddisbursementsincurredinobtainingprofessionaladviceandassistance)andyoumust
immediatelypaytoNHBC(withoutdeductionorsetoff)anamountequaltotheamountofthecostsstatedin
thenotice.
Settlement of Claimsi) NHBCmaysettleclaimsandcomplaintsmadeunderNHBCCoverbyanymethodthatNHBCinitsabsolute
discretionconsidersappropriate(includingbywayofmakingapaymenttotheOwner,arrangingfortests,
investigationsand/orworktobecarriedout,orarrangingtopurchasetherelevantHome)andyourliability
undertheseRuleswillbeunaffectedbythechoiceofmethod.
NHBC Rules for builders and developers registered with NHBC
Common Partsj) IfaclaimismadeunderNHBCCoverbytwoormoreOwnersinconnectionwithanyCommonParts(theuseor
enjoymentofwhichissharedbythem)theninrespectofsuchCommonPartsNHBCmayproceedagainstyouas
ifalloftherelevantOwnerswhosharetheuseorenjoymentofthoseCommonPartsandwhoarealsoentitledto
claimunderNHBCCoverinconnectionwiththoseCommonParts,hadmadeclaimsundertheirNHBCCover.
Powers of NHBC
Bonds and Sureties29)
a) NHBCmayatyourrequestandinitsabsolutediscretionagreetoactassuretyinrespectofaBondinwhichcaseyoumustpayNHBC’schargesanddisbursementsforthatserviceasadvisedtoyoubyNHBCfromtimetotime.
b) NHBCmayimposeConditionsinconnectionwithitsagreementtoactassuretyinrespectofaBond,including
Conditionsrequiringyouto:
i) procureanagreementfrom(atNHBC’soption)anyofyourAssociates,anyparentcompany,anyofyour
directors,oranyofyourpartners,ontermssuchthattheyagreetoindemnifyNHBCagainstallcosts
(includinglegalcostsanddisbursements)thatmaybeincurredbyNHBCinconnectionwiththeBondifNHBC
becomesliableundertheBond(includinganyliabilitytomakeapaymentortoundertakeworks);
ii) depositwithNHBCasumnotexceedingthemaximumamountthatNHBCcouldbeliableforifNHBCbecomes
liableundertheBond(includinganyliabilitytomakeapaymentortoundertakeworks).
c) NHBCmayimposeConditionsunderRule29)b)asaConditionofitsagreementtoactassuretyinrespectofaBond.
d) NHBCmayimposeConditionsunderRule29)b)afterhavingagreedtoactassuretyinrespectofaBondifatany
timebeforeNHBC’sactualand/orcontingentliabilitiesundertheBondarereleasedorextinguished:
i) youareinbreachofanyofyourobligationsundertheBond;
ii) yourRegistrationissuspendedorcancelledunderRule30)orunderRule41);
iii) youaresubject(inthecaseofacompany)toachangeofControlor(inthecaseofpartnership)toa
change(byapartnerjoiningorleavingthepartnership)inthecompositionofthepartnershipordissolution
ofthepartnership.
e) AdepositmadeunderRule29)b)willbereturnedtoyouonceNHBC’sactualand/orcontingentliabilitiesunderthe
Bondhavebeenreleasedorextinguished,lessanysumthatyouareobligedtopaytoNHBCunderRule29)f)in
connectionwiththeBond.
f) YoumustreimbursetoNHBCondemand(withoutdeductionorsetoff)anycoststhatareincurredbyNHBCin
connectionwithaBondifNHBCbecameliableundertheBond(includinganyliabilitytomakeapaymentorto
undertakeworks)andthisobligationwillnotbedischargedbythemakingofadepositunderRule29)b).
Powers of NHBC on specified events30)
a) NHBCmaydecide:
i) toamendtheConditionsofyourRegistrationortoimposefurtherConditionsofyourRegistration;
ii) thatyoumustcomplywiththeRules,andanyConditionsofyourRegistrationand/oranyotherconditions
specifiedbyNHBC;
iii) thatyoumustpaycompensationtoanOwnerortoNHBC;
iv) tosuspendyourRegistrationwhilst:
a itinvestigatesand/ortakesactioninrespectofanyofthematterslistedinRule30)b);or
b areviewtakesplaceunderRule31);or
c anappealisheardunderRules32)to38);
v) tocancelyourRegistration;
vi) totakeanyotheractionitthinksfit.
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 13
b) NHBCmaymakeanyofthosedecisionsif:
i) youfailtocomplywithanyoftheRules;
ii) youfailtocomplywithaConditionofyourRegistration;
iii) youconductyourselfinamannerlikely(inNHBC’sopinion)tobringNHBCintodisrepute;
iv) youceasetradingorresolvetodoso;
v) youfailtodischargeyourdebtsinfullandattheduetime;
vi) theRegistrationofyourAssociatehasbeencancelled;
vii) youfailtopayyourannualsubscriptionunderRule6);
viii) youdonotanswerarecordeddeliveryletterfromNHBCwithin28daysofposting;
ix) anychequeorsimilardocumentissuedbyyouisdishonouredorpaymentisrefused;
x) NHBCatitssolediscretionconsidersitappropriatetodoso;
xi) youdonotcomplywiththetermsofanycodeofconductthatNHBCrequiresyoutocomplywith
underRule47)d).
c) DuringanyperiodinwhichyourRegistrationissuspendedorcancelled,youmustnot:
i) submittoNHBCanySiteNotificationorApplicationforNHBCCover;
ii) deliver,orundertaketodeliveranyNHBCOfferDocumentsorNHBCOfferNotificationsinrespectofany
HomewithoutNHBC’swrittenpermissiontodoso;
iii) indicatetoanypersonbyanymeansthatyouareRegisteredasaBuilderorDeveloper,unlessinthecaseof
suspensionyoualsoindicatethatyouarecurrentlysuspended.
d) NHBCwillgiveyouwrittennoticebeforemakingadecisionunderthisRule30).
Reviews and appeals
Right to review decisions of NHBC
31)
a) Ifyoureceive:
i) noticefromNHBCunderRule4)ofadecisiononyourapplicationforRegistration;or
ii) noticefromNHBCunderRule5)ofadecisiontoimposeadditionalConditionsortoamendyourConditionsof
Registration;or
iii) aninstructionfromNHBCunderRule12)nottosubmitaSiteNotification;or
iv) aninstructionfromNHBCunderRule13)nottosubmitanApplicationforNHBCCover;or
v) aninstructionfromNHBCunderRule20)nottodeliverNHBCOfferDocumentsorNHBCOfferNotifications;
or
vi) aninstructionfromNHBCunderRule27)g)tostopwork;or
vii) noticeunderRule30)d);
youhavetherightssetoutinRule31)b).
b) YouhavetherighttomakewrittenrepresentationsprovidedthatthoserepresentationsreachNHBCnomore
than21daysafteryoureceivetherelevantnoticeorinstruction.Iftheapplicablelaw(underRule58))isthelaw
ofScotland,youalsohavetherighttorequestandattendahearingandmakerepresentationsatthathearing.
c) Followingreceiptofrepresentationsand/orahearingunderRule31)b)NHBCwillgiveyouwrittennoticeof
itsdecision.
Appeals against a review decision (other than when the law of Scotland applies)
32)
a) YouhavearighttoappealagainstanydecisionnotifiedunderRule31)c).YoumustgiveNHBCwrittennoticeof
suchanappealwithin14daysafteryoureceivenoticeofthatdecision.
b) Atthesametimeasyougivenoticeofyourappealyoumustdeposit£500withNHBCassecurityforitsinitial
costsoftheappeal.
NHBC Rules for builders and developers registered with NHBC
The Appeal Committee
33)
a) Youmayrequestthatthehearingofyourappealbeheldbeforeeither:
i) theChiefExecutiveofNHBC;or
ii) anAppealCommittee;
providedthattheChiefExecutivemaydeclinetohearyourappealinwhichcaseitwillbeheardbyan
AppealCommittee.
b) AnAppealCommitteewillconsistofanindependentChairmannominatedbytheCharteredInstituteofArbitrators
andeither:
i) twomembersnominatedbytheBoardofNHBC;or
ii) ifyourregisteredofficeorprincipalplaceofbusinessisinNorthernIreland,twomembersofNHBC’s
NorthernIrelandCommitteenominatedbyitsChairmanandwhohavenotbeeninvolvedinyourapplication
forRegistration.
c) WhenhearingyourappealtheChiefExecutiveortheAppealCommitteewillactasaprivatetribunalandnotas
anArbitrator.
Directions34)
a) TheChiefExecutiveortheAppealCommitteewillgivedirectionsfortheconductofanappealandmayrequire
youtoprovidesecurityforNHBC’scosts.Ifyoufailtocomplywiththosedirections,yourappealmaybedismissed
withoutahearing.
b) Adatewillbefixedforthehearingoftheappealatwhichyoumaycallevidenceandmakerepresentations.
c) Atleast28daysbeforethehearingdateyoumustdelivertoNHBCadetailedwrittenstatementofallthefactsand
mattersyouwishtohavetakenintoaccountatthathearing.Ifyoudonotdoso,thehearingmaybeadjournedor
yourappealmaybedismissedwithoutahearing.
The decision35)
a) TheChiefExecutiveortheAppealCommitteemaydecide:
i) toconfirm,varyorreverseadecisionmadeunderRule30);and
ii) tomakewhateverorderitconsidersappropriatewithregardtothedeterminationandpaymentofcosts
(takingintoaccountanypaymentmadeunderRules32)b)or34)a)).
b) TheChiefExecutiveorAppealCommitteewillsendyouwrittennoticeofthedecision.
Appeals in Scotland
Appeals against a review decision (when the law of Scotland applies)36) Iftheapplicablelaw(underRule58))isthelawofScotland,youhavearighttoappealagainstanydecisionnotified
underRule31)c)butRules36)to37)shallapplyinsteadofRules32)to35)andyoumustgiveNHBCwrittennoticeofyourappealwithin21daysafteryoureceivenoticeofthedecision.Youmustatthesametimedeposit£500(orsuchothersumastheAppealTribunalshallfromtimetotimedetermine)withtheAppealTribunalassecurityforitsinitialcostsoftheappeal.
37) TheChairmanoftheAppealTribunalwillbenominatedbythePresidentoftheLawSocietyofScotland.
Theothermemberswillbenominated:
a) onebythePresidentoftheScottishBuildingEmployersFederation;and
b) onejointlybythePresidentoftheRoyalInstituteofBritishArchitectsandthePresidentorVicePresidentofthe
RoyalInstitutionofCharteredSurveyors.
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 15
38)
a) TheAppealTribunal:
i) willgivedirectionsfortheconductoftheappealandshallcommencethehearingoftheappealwithina
periodofnotmorethanthreemonthsfromthedateofitsreceiptofNHBC’sapplicationtotheChairmanto
convenetheTribunal;
ii) mayconfirm,varyorreverseNHBC’sdecision;
iii) may,ifitissatisfiedthatanyfailuretogivenoticeofappealwithinthetimeallowedbytheRulesarosefrom
somesoundandsubstantialreason,extendthetimeinwhichnoticemaybegiven;
iv) maymakeanyorder,includinganyorderconcerningthedeterminationandpaymentofcosts,takinginto
accountanypaymentmadeunderRule36),thatitthinksfit;
v) willgiveyouwrittennoticeofitsdecision.
Effect of instructions etc.
Effect of instructions and decisions etc.39)
a) Unlessotherwisestatedanydecision,instructionorrequirementofNHBCtakeseffectimmediatelyitisnotified
toyouinwritingbyNHBCandcontinuesinforceunlessanduntilitissatisfied,withdrawnorsupersededbyany
subsequentdecision,instructionorrequirementofNHBC.
b) AnydecisionofNHBCunderRules30)or31)takeeffect21daysafteryoureceivewrittennoticeofitandwill
remaininforceunlessanduntilanycontraryorderordecisionismadebyanAppealCommittee,AppealTribunal
ortheChiefExecutiveunderRules32)to38).
c) AnorderordecisionoftheAppealCommittee,AppealTribunalorChiefExecutivetakeseffectimmediatelyitis
notifiedtoyouinwriting.
40)
a) Youmustcomplywithanyinstruction,requirement,decisionororderofNHBCortheAppealCommittee,Appeal
TribunalorChiefExecutive(asthecasemaybe)whichhastakeneffect.
b) NHBCmaypublishormakepubliccommentaboutanydecisionorinstructionthatismadeorgivenunderorin
connectionwiththeRules;itmaydosoevenifanappealagainstthatdecisionorinstructionispending.
Cancellation of Registration
Voluntary and automatic cancellation of Registration41)
a) NHBCwillcancelyourRegistrationonyourwrittenrequestunless,priortoreceiptofyourrequest,either:
i) NHBChasgivenyounoticeunderRule30)inrespectofoneormoreofthematterssetoutbelow;or
ii) NHBCwasconsideringgivingyounoticeunderRule30)inrespectofanysuchmatter(s)anddoessowithin14
daysofreceivingyourwrittenrequest.
b) NHBCmayonlyrefuseyourrequestifithasgivenyounoticeunderRule30)(orisconsideringgivingyousuch
notice)inrespectofadecisionrelatingtooneofthefollowingmatters:
i) Rule30)b)i)butonlywherethisrelatestoafailurebyyoutocomplywithRules10),15),22),23),27),28)or29);
ii) Rule30)b)v);or
iii) Rule30)b)ix).
c) NHBCwillhavetherighttocontinuetorefusetoacceptyourrequestforcancellationofyourRegistrationuntil
anyactionunderRule30),reviewunderRule31)orAppealunderRules32)to38)isconcludedorwithdrawn.The
resultoftheaction,revieworappealwilltakeprecedenceoveryourrequest.
d) YourRegistrationwillbecancelledautomaticallyif:
i) abankruptcyorderismadeagainstyou;
ii) youareacompanyandgointoliquidationoraredissolved(otherthanforthepurposesofsolvent
reconstruction);
iii) anadministrator,areceiveroranadministrativereceiverisappointedtoyourbusiness;
iv) amortgageeorheritablecreditorsells,orappointsareceiverover,anyofyourland(whetherornotyouhave
madeaSiteNotificationinrespectofthatland);
v) youenterintoaVoluntaryArrangementwithyourcreditors.
e) ThedateofcancellationofyourRegistrationwillbethedateoftherelevantorder,appointmentorarrangement.
NHBC Rules for builders and developers registered with NHBC
No indication of Registration after cancellation42)
a) IfyourRegistrationiscancelled,subjecttoRule43),youmust:
i) immediatelyceasetousetheNHBClogoandotherNHBCtrademarksandimmediatelyceasetouseand
wherenecessary(inordertoceasetouse)remove,obliterateordestroyanysigns,notices,literatureorother
materialtheuseofwhichmayrepresenttoothersorleadotherstoinferthatyouareRegistered;
ii) immediatelyreturntoNHBCallNHBCOfferDocumentsandNHBCOfferNotificationsandNHBCpromotional
materialwithinyourpossessionorcontrol.
After cancellation of Registration43)
a) SubjecttoRule43)b),afterthecancellationofyourRegistrationyoumustimmediatelyreturnorarrangeforthe
returntoNHBCofallNHBCOfferDocumentsandNHBCOfferNotificationsinrespectofwhichyoumadethe
ApplicationforNHBCCoverandwhichhavenot(priortocancellation)beendeliveredtotherelevantfirstOwner.
b) Youmaywithin28daysofthecancellationofyourRegistrationapplytoNHBCforconsenttodeliverNHBCOffer
DocumentsandNHBCOfferNotifications(inrespectofwhichyoumadetheApplicationforNHBCCover)tothe
relevantfirstOwnerandpendingNHBC’sdecisionyoumayretain(butnotdeliverunlesspermittedunderRule43)
d))thoseNHBCOfferDocumentsandNHBCOfferNotifications.
c) Ifyoudonotwithin28daysofthecancellationofyourRegistrationapplytoNHBCforconsenttodeliverNHBC
OfferDocumentsandNHBCOfferNotifications(inrespectofwhichyoumadetheApplicationforNHBCCover)to
therelevantfirstOwner,oryouapplyandNHBCrefusesyoupermissiontodeliverthem,thenNHBCmaycancelthe
relevantApplicationforNHBCCover.
d) IfyourRegistrationiscancelledatyourownrequestNHBCwillnormallyconsenttoyoudeliveringNHBCOffer
DocumentsandNHBCOfferNotificationsprovided:
i) youcansatisfyNHBCthatyouintendtocontinueinbusinessasaBuilderorDeveloperandwillbeableto
complywithyourobligationsinrespectoftheHomeundertheRulesandundertheNHBCCover;and
ii) youprovideNHBCwithsecurityinaformsatisfactorytoNHBCforthedischargeofthoseobligationsinsuch
formasNHBCreasonablyrequires.InthisconnectionyoumustproducetoNHBCanyevidencewhichitmay
reasonablyrequestincluding(butnotlimitedto)yourauditedaccounts,statementsfromyouraccountants
andbankersandtradeandotherreferences.
e) IfyourRegistrationiscancelledotherwisethanatyourownrequest,NHBCwillhaveabsolutediscretionasto
whetherornottograntyourapplicationforconsenttodeliverNHBCOfferDocumentsandNHBCOfferNotifications.
f) EvenafteryourRegistrationiscancelled:
i) youmustcontinuetocomplywiththeseRulesinrespectofanyHomebuiltorsoldbyyouoronyourbehalf;
ii) youmustdischargeanyactualorcontingentliabilitywhichyouhaveincurredtoanOwnerortoNHBC;and
iii) youmustpaytoNHBCanysumpayableundertheseRuleswhetheritbecameorbecomesduebeforeor
aftercancellation.
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 17
Release from continuing obligations44) IfyourRegistrationiscancelled,youmayaskNHBCtoreleaseyoufromanyofyourcontinuingobligationsunderthe
RulesortoundertakeanyofyourobligationsunderorinconnectionwithanyNHBCCover.IfNHBCispreparedtograntthatreleaseortoundertakethoseobligationsitwillnotifyyouoftheamountofanypaymentitrequiresinexchange.Youmaythenacceptorrejectthatoffer.Ifyouacceptorrejectthatoffer,NHBCwillnotbeliableinrespectofanymatterthathasalreadybeennotifiedtoyouortoNHBC.
45) IfyourRegistrationiscancelledandyouceasetocarryonbusinessasaBuilderorDeveloper(eitherbeforeoraftercancellation)NHBCmayrequireyoutomakeapaymenttoitinexchangeforitsundertakingsomeorallofyourobligationsunderanyNHBCCoverand/ortheRules.IfNHBCexercisesitsrightsunderthisRule45)NHBCwillnotifyyouinwritingoftheamountpayableandyoumustimmediatelypaythatamounttoNHBC(withoutdeductionorsetoff).
Reinstatement of Registration
Application for reinstatement of Registration – Procedure and Conditions 46)
a) IfyouhavepreviouslybeenRegisteredwithNHBCyoumayatanytimeapplytohaveyourRegistrationreinstated.
Youmustmakethatapplicationinwriting.NHBCwillgiveyouwrittennoticeofitsdecisiononyourapplication.
b) IfyourRegistrationwascancelledatyourownrequestNHBCwillreinstateyourRegistrationontermswhichareno
lessfavourablethantheywouldhavebeenifyourRegistrationhadnotbeencancelledunless:
i) NHBCwouldhavebeenentitledtomakeyourRegistrationsubjecttoneworvariedConditionsunderRule5)
ortotakeactionunderRule30);
ii) youfailtocomplywithanyrequestbyNHBCtoprovide,ortoauthoriseanythirdpartytoprovideany
informationand/ordocumentsrequestedbyNHBC;or
iii) informationcomestotheattentionofNHBCwhichindicatesthatanychargespayablebyyouunderRule14)
shouldbehigherthantheywouldhavebeenifyourRegistrationhadnotbeencancelled.
Inthosecircumstances,NHBCwillnotbeobligedtoreinstateyourregistrationbutifitdoessoitmaymakeyour
registrationsubjecttoappropriateConditions.
c) IfyourRegistrationisreinstatedyoumustpay:
i) NHBC’sreasonableadministrativeexpensesinconnectionwithyourapplication;
ii) theannualsubscriptionunderRule6)a)forthewholeoftheyearinwhichyouarereinstated;and
iii) allotheramountsduefromyoutoNHBCortoanOwnerunderorinconnectionwiththeseRulesand/orany
earlierNHBCRulesforBuildersandDevelopersRegisteredwithNHBCorunderorinconnectionwithorin
respectofanyNHBCCover.
d) IfyourRegistrationwascancelledotherwisethanatyourownrequestorNHBCrefusestoreinstateyour
RegistrationunderRule46)b)NHBCmay:
i) acceptyourapplicationeitherunconditionallyorsubjecttoappropriateConditions;
ii) deferconsiderationofyourapplicationpendingfurtherinquiriesortheprovisionoffurtherinformation;
iii) requireyoutomakeafreshapplicationforRegistrationasifyouhadnotpreviouslybeenRegistered;
iv) rejectyourapplication.
NHBC Rules for builders and developers registered with NHBC
Consumer Code for Home Builders
Consumer Code for Home Builders47)
a)YoumustensurethatthefirstOwnerofanyShelteredDwellingbuiltortobebuiltorsoldbyyouinEngland
orWalesisprovidedwithaPurchaser’sInformationPackthatcontainstheinformationspecifiedintheNHBC
ShelteredHousingCode.ThismustatthelatestbeprovidedwhenthatOwnerreservestheDwellingandthey
mustinanyeventbegivensufficienttimeproperlytoconsidertheinformationthatthePackcontainsbefore
theenterintoaContract.
b)YoumustensurethattheManagementOrganisationofanyShelteredDwellingbuiltortobebuiltorsoldbyyouin EnglandorWalesentersintoaManagementAgreementasrequiredbytheNHBCShelteredHousingCode.
c)IfyousellaShelteredDwellinginEnglandorWalestoanyonewhoisactinginthecourseofabusinessyoumustensurethattheycovenant:
i)thataPurchaser’sInformationPackwillbeprovidedtothefirstOwnerofthatDwellingasrequiredbyRule47)a);
ii)thattheManagementOrganisationofthatDwellingwillenterintoaManagementAgreementasrequiredbyRule47)b);and
iii)thatcovenantssuchasthoseatRule47)c)i)andRule47)c)iiwillbeobtainedonanyfurthersuchsaleortransfer.
d)YoumustcomplywiththerequirementsoftheConsumerCodeforHomeBuilders,inrespectofeachHomereferred
toinaSiteNotificationorApplicationforNHBCCoveryousubmittoNHBC.
Obligations under these and earlier Rules
Effect of earlier rules48) InadditiontoyourobligationsundertheseRulesyouwillcontinuetocomplywithandbeboundbyanyearlierNHBC
RulesforBuildersandDevelopersRegisteredwithNHBCinrespectofwhichanyobligationorrequirementhasarisenonorbeforetheEffectiveDatefortheseRules.AnydisputeaboutthatobligationorrequirementwillbesubjecttotheseRules.
49) YoumustnotdenyliabilityunderorinconnectionwithanyNHBCCoveronthegroundsthat:
a) NHBCwasnotauthorisedtoofferthatNHBCCoveronyourbehalf;or
b) successiveOwners(includinganymortgageeorheritablecreditorinpossession)arenotapartytotheNHBCCover.
Communications and information
Address for communications50)
a) NHBCwillsendallcommunicationsundertheRulestoyouraddressasitappearsontheRegister.
b) YoumustsendanyreplytoacommunicationfromNHBCtotheaddressgivenonthatcommunication.
c) AnycommunicationsentbyFirstClassPostorrecordeddeliverytotheappropriateaddresswillbetreatedas
havingbeenreceived/servednotlaterthanthesecondworkingdayafterpostingandifsentbysecondclass,the
thirdworkingdayafterposting.
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 19
Information to be supplied to NHBC51)
a) YoumustgiveNHBCwrittennoticeofanyproposedchangeofaddressbeforethatchangetakeseffect.NHBCwill
beentitledtorelyonanycommunicationasifitweredeliveredinaccordancewithRule50)c)regardlessofits
return,destructionoronwardtransmission.
b) YoumustimmediatelygiveNHBCwrittennoticeif:
i) youareasoletraderorapartnershipandanyoneacquiresafinancialinterestinyourbusinessthenyoumust
givedetailsoftheacquisition,theinterestacquired,andthenameandaddressofthepersonororganisation
whichhasacquiredtheinterest;
ii) youareapartnership,andthereisanychange(forexampleduetodeath,retirementoranewpartnerjoining)
inthecompositionofthepartnershipthenyoumustgivedetailsofthechange,andthenameandaddressof
anynewpartner;
iii) youareacompany,andthereisanychangeinthemembershipoftheboardofdirectorsthenyoumustgive
detailsofthechange,andthenameandaddressofanynewdirector;
iv) youareacompany,andanyonebecomestheregisteredorbeneficialownerofmorethan10%ofthe
company’ssharesthenyoumustgivedetailsofthenameandaddressofthenewowner(s)oftheshares;
v) youbecomeunabletomeetyourdebtsastheyfalldue;
vi) youintendordecidetoceasetrading,topetitionforyourownbankruptcy,togointomembers’orcreditors’
voluntaryliquidation,toapplyfortheappointmentofanadministrator,toenterintoaVoluntaryArrangement
ortomakeanyarrangementorcompositionwithyourcreditors;
vii) youceasetrading,becomebankrupt,gointoliquidation,enterintoaVoluntaryArrangementormakean
arrangementorcompositionwithyourcreditors;
viii) anadministrator,areceiveroranadministrativereceiverisappointedinrelationtoyourbusiness;
ix) amortgageeorheritablecreditorsells,orappointsareceiverover,anyofyourland(whetherthesubjectofa
SiteNotificationornot);
x) youdisposeoforproposetodisposeofanylandinrespectofwhichNHBChasenteredintoaBond(orany
othersuretyindemnityorguaranteeinfavourofathirdpartyrelatingtocompletionofanyworksbyyouor
onyourbehalf).
c) YoumustimmediatelyuponrequestgivewrittennoticetoNHBCofthenameandaddressoftheFirstOwnerofany
Homebuiltortobebuiltorsoldbyyouoronyourbehalf.
52)
a) IfrequiredbyNHBCyoumust:
i) producetoNHBCanypublishedorunpublishedaccounts,cashflowforecasts,bankreports,buildingand
developmentprogrammesandanyotherdocumentswhichNHBCmayreasonablyrequiretoenableitto
determineyourcontinuingabilitytocomplywiththeRulesand/ortomeetyourobligationsunderany
NHBCCover;
ii) supplyparticularsofanyclaimsmadetoyouortoanythirdpartyinrespectofaHomebuiltorsoldbyyou
andornotthatHomewasbuiltorsoldwiththebenefitofNHBCCover;
iii) authoriseanythirdpartytodisclosetoNHBCfulldetailsofanysuchclaims.
b) NHBCwilltreatasconfidentialanyinformationanddocumentssuppliedtoitbyyouoronyourbehalf:exceptfor
i) anyinformationand/ordocumentsthatbecomepubliclyavailable,otherthanasaresultofthebreachby
NHBCofthisRule52)b);
ii) anyinformationand/ordocumentsthatNHBChascreatedorreceived(fromanysource)thedisclosureof
which,inNHBC’sopinion,isrequiredbyanylaw(includinganyorderofaCourtofcompetentjurisdiction),any
parliamentaryobligation,ortherulesofanystockexchangeorgovernmentalorregulatoryauthorityhaving
theforceoflaw;whichNHBCmaydisclosetotheappropriatepersonortheirauthorisedrepresentatives.
53) IfNHBCBuildingControlServicesLimitedisactingasanApprovedInspectorundertheBuildingAct1984in
respectofanyHomebuiltorsoldbyyouoronyourbehalfyoumustinformNHBCassoonasthatHomeissoldor
occupiedbyanypersonasaresidence.
NHBC Rules for builders and developers registered with NHBC
Contractual Matters
Sums payable54)
a) AnyamountpayablebyyoutoNHBCortoanOwnerunderorinconnectionwiththeRulesmustbepaidbyyouto
NHBCondemandwithinterestpayablefromthedateofNHBC’sdemandat5%abovetheBankofEnglandbase
rateofinterestfromtimetotime,withinterestaccruingonadailybasis.b) NHBCmaywithoutnoticetoyoucombine,consolidateormergealloranyofyourliabilitiestoNHBCandmay
setoffortransferanysumsfromtimetotimeowedtoyoubyNHBCinortowardsthesatisfactionofanyofthoseliabilities.
c) WhereValueAddedTax,InsurancePremiumTaxoranyothersales,use,propertyorothertransactionaltaxorlevyispayableinconnectionwithanypaymentdueundertheRulesyoushallalsopaysuchValueAddedTax,InsurancePremiumTaxandothertaxorlevyattherateandinthemannerfromtimetotimerequiredbytheproperauthorities.
Disputes under Rules 26 and 27
55)a) IntheeventofadisputeunderRules26)or27)youmayapplytotheCharteredInstituteofArbitratorsinLondon
(‘CharteredInstitute’)fortheappointmentofanArbitrator.b) IfyouwishtoapplyforanArbitratortobeappointed,youmustfirstnotifyNHBCinwritingandthenNHBCwill
arrangefortheCharteredInstitutetoprovideyouwithanapplicationform.Within21daysofreceivingtheapplicationformfromtheCharteredInstituteyoumustcompleteandreturntheform(togetherwithanychargespecifiedinit)totheCharteredInstituteandprovideacopytoNHBC.
c) NHBCshallbeentitledtoproceedasifnodisputehasariseninrespectofanymatterwhichyouareentitledtorefertoArbitrationunderthisRule55)untilsuchtimeasthematterisreferredtoArbitrationunderthisRule55)bythereturnofthecompletedapplicationforminaccordancewithRule55)b).
d) IfyoufailtocompleteandreturnanapplicationformtotheCharteredInstitutewithin21daysofreceivingit: i) yourapplicationfortheappointmentofanArbitratorshallberegardedasabandoned;and
ii) NHBCshallbeentitledtoproceedasifnodisputehadarisen.
Legal proceedings involving an Owner
56)a) IfatanytimearbitrationorlegalproceedingsarecommencedbetweenyouandanOwnerinrespectofaHomein
relationtowhichanyNHBCCoverisinforce:
i) youmustnotifyNHBCinwritingandthereafterprovideNHBCwithallinformationanddocumentsthatNHBC
reasonablyrequestsinconnectionwiththoseproceedings;
ii) youmust,ifNHBCrequests,makeanyreasonableapplicationandtakeanyreasonablestepsspecifiedby
NHBCtoenableittotakepartinthoseproceedings.NHBCwillreimburseyouforyourreasonablecostsofthat
applicationorstep.b) IfadisputearisesbetweenyouandanOwneroutofyourobligationsunderNHBCCoverandtheOwnerwishes
tohavethatdisputedeterminedbyarbitrationyoumustgiveyourwrittenconsenttotheappointmentofanArbitratorinwhateverformisrequiredandassoonasyouarenotifiedofthatrequirement.YoumustpayanyfeerequiredbytheArbitratorortheappointingbodyassoonasitisrequested.
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 21
Changes to the Rules
57)a) NHBCmayamendtheRulesaftergivingnoticetoyou,includingacopyoftheamendedRules.b) AmendedRuleswilltakeeffectfromthecommencementdatereferredtointheamendedRulesandyouwillbe
boundbyandmustcomplywiththoseamendmentsfromthatdate.
General contract provisions
58)a) Ifyourregisteredofficeaddress(orifnotacompanyorlimitedpartnership,yourprincipalplaceofbusiness)isin
England,Wales,ScotlandorNorthernIreland,theRulesshallbegovernedbyandconstruedinaccordancewiththelawsapplicableinthecountryinwhichyourregisteredofficeorprincipalplaceofbusinessissituated.
b) Ifyourregisteredofficeaddress(orifnotacompanyorlimitedpartnership,yourprincipalplaceofbusiness)isnotinEngland,Wales,ScotlandorNorthernIreland,theRulesshallbegovernedbyandconstruedinaccordancewiththelawsapplicableinEngland.
c) YourobligationsundertheRules(asvariedbyanyConditions)mayonlybevariedorwaivedwiththewritten
consentofNHBC.
d) ThefailureordelaybyNHBCatanytimetoenforceitsrightsundertheRules(asvariedorsupplementedbyany
Conditions)shallnotbeconstruedasawaiverofsuchrightsandshallnotaffecttheirvalidityortherightofNHBC
toenforcetheRules(asvariedorsupplementedbyanyConditions).
e) TheRules(asvariedorsupplementedbyanyConditions)areintendedtobeforthesolebenefitofyouandNHBC
andeveniftheyrefertothirdpartiestheyarenotintendedtoconferbenefitsuponsuchthirdpartieswhichare
enforceablebythem,exceptwheretheRulesrefertoanyNHBCCompany,inwhichcasethereferenceismadewith
theintentionofcreatingrightsenforceablebytheNHBCCompanyreferredto.
f) IfanyoftheRules(asvariedorsupplementedbyanyConditions)isforanyreasonheldtobeillegal,invalid,
ineffective,inoperableorotherwiseunenforceable,itshallbeseveredanddeemedtobedeletedandthevalidityand
enforceabilityoftheremainderoftheRules(asvariedbyanyConditions)shallnotbeaffectedorimpairedthereby.
NHBC Rules for builders and developers registered with NHBC
NHBC Rules for builders and developers registered with NHBCFor builders and developers registered with NHBC page 23
Terms and conditions of NHBC Building Control Services Limited for the provision of the services of an ‘Approved Inspector’ under the Building Act 1984, in England or Wales.
Part 1 - Introduction1. Parts1-3containthetermsandconditionsapplicablewhenNHBCBuildingControlServicesLimited(‘NHBC’)provides
theservicesofan‘ApprovedInspector’undertheBuildingAct1984,inEnglandorWales.
2. NationalHouse-BuildingCouncilisacompanylimitedbyguaranteeandregisteredinEnglandandWalesnumber320784. TheregisteredofficeisNHBCHouse,DavyAvenue,Knowlhill,MiltonKeynes,BuckinghamshireMK58FP.
3. NHBCisawhollyownedsubsidiaryoftheNationalHouse-BuildingCouncil.
4. NHBCislicensedbytheConstructionIndustryCounciltoactasanApprovedInspectorinEnglandandWales.
5. ThetermsandconditionssetoutinthisdocumentapplytoeachInitialNoticeservedbyNHBConorafter1stJanuary2011.Ineachcasewhen,attherequestofaClient,NHBCservesanInitialNotice,thatshallbringintoforcewitheffectfromthedateoftheInitialNoticeaseparatecontractbetweenNHBCandtheClientfortheprovisionbyNHBCoftheservicesofanApprovedInspectorfortheBuildingWorktowhichtheInitialNoticerefers(‘Contract’)andthatContractshallbeonthetermsandconditionssetoutinthisdocument.
6. IftheClientisregisteredwiththeNationalHouse-BuildingCouncilasbuilderordeveloper,thetermsandconditionssetoutinthisdocumentshallnotaffecttheClient’sobligationsundertheNHBCRulesforBuildersandDevelopersRegisteredwithNHBC,norunderanynewhomewarrantypoliciesapplicabletohomesbuiltorsoldbytheClient.
7. Throughoutthisdocument,certaincapitalisedwordsandexpressionsareused.TheyhavethemeaningssetoutinPart3ofthisdocument.
8. Anyreferenceinthisdocumenttoanystatuteorstatutoryprovisionshallbeconstruedasincludingareferencetothatstatuteorstatutoryprovisionasfromtimetotimeamended,modified,extendedorre-enactedwhetherbeforeorafterthedateanyContractcomesintoforceandtoallstatutoryinstruments,ordersandregulationsforthetimebeingmadepursuanttoitorderivingvalidityfromitand(sofarasmaybeapplicable)anypaststatutoryprovisions(asfromtimetotimeamended,modified,extendedorre-enacted)whichsuchprovisionhasdirectlyorindirectlyreplaced.
9. Exceptinsofarasthecontextotherwiserequires,wordsdenotingthesingularshallincludethepluralandviceversa,wordsdenotinganyonegendershallincludeallgenders,andwordsdenotingpersonsshallincludebodiescorporate,unincorporatedassociations,partnershipsandindividuals.
10. Headingstoclausesareincludedforeaseofreferenceonlyandshallhavenoeffectontheinterpretationorconstructionofthisdocument.
Appendix - Terms and conditions of NHBC Building Control Services Limited
Part 2 - Applicable Terms and Conditions
1. Provision of servicesAppointment
1.1 FollowingtheserviceofanInitialNoticebyNHBCattherequestofaClient,NHBCshallprovidetheServicesforthe
relevantBuildingWork,subjecttothetermsandconditionssetoutinthisdocument.
1.2 NHBCshallprovidetheServiceswithreasonableskill,careanddiligenceinaccordancewiththeBuildingAct1984
PartIIandregulationsmadethereunder(includingtheBuilding(ApprovedInspectorsetc.)Regulations2010,as
amended)andwithdueregardtotheConstructionIndustryCouncil’sCodeofConductforApprovedInspectors
(asamended,modified,extendedorre-issuedfromtimetotime).
1.3 NHBCshallprepareandprovidetotheClientanInspectionNotificationFrameworkdocument,thatsetsoutin
outlinehowandwhenNHBCproposestoprovidetheServices;providedthatinappropriatecasesNHBCmay
useagenericInspectionNotificationFrameworkdocumentpreparedfortheClientgenerallyandnotspecifically
preparedorprovidedinrespectofanyparticularBuildingWork.
1.4 WhenpreparingtheInspectionNotificationFrameworkdocumentandthereafterwhenprovidingtheServices
NHBCshallusereasonableendeavourstopaydueregardtothescheduledprogrammeofworksfortheBuilding
Work,asadvisedtoNHBCbytheClientfromtimetotime.
1.5 NHBCshallgiveaFinalCertificatetotheLocalAuthorityforeachpartoftheBuildingWorkforwhichNHBCis
satisfied(havingregardtoitsdutiesasreferredtoinclause1.1)thatitisappropriateforittodoso.
1.6 NHBCmayatanytimebynoticeinwritinginformtheClientthatinrespectofthewholeoranypartofanyBuilding
WorkNHBCisnotsatisfied(havingregardtoitsdutiesasreferredtoinclauses1.1and1.2)thatitisappropriatefor
ittoissueaFinalCertificate(inwhichcaseclause6.3shallapply).
Clientinformationandassistance
1.7 TheClientshallpromptlyprovidesuchinformationandassistanceasNHBCreasonablyrequiresfromtimetotime
inordertofacilitatethetimelyprovisionoftheServices,includingandwithouttheneedforNHBCtorequest
thesame:
1.7.1 thedesigndocumentsfortheBuildingWork,asrelevanttomatterspertainingtocompliancewiththeBuilding
Regulations;
1.7.2 thescheduledprogrammeofworksfortheBuildingWork;
ineachcasepromptlyprovidinganymodifiedorre-issuedversionsoftheinformationordocumentsifanyare
createdfromtimetotime.
1.8 TheClientshall(havingdueregardtothescheduledprogrammeofworksfortheBuildingWorkandtheInspection
NotificationFrameworkdocument)informNHBCassoonasreasonablypossibleinadvanceandinanyeventnot
lessthanoneclearworkingdayinadvancewheninspectionvisitsarerequiredfortheBuildingWork.
Design,permitsandapprovals
1.9 NHBCherebyinformstheClientthatNHBCisnotresponsibleforthedesign,specificationormanagementof
constructionworkfortheBuildingWorkandtheServicesdonotincludetheprovisionbyNHBCofadviceonor
managementofanyaspectoftheconstructionworkfortheBuildingWork.
1.10 NHBCherebyinformstheClientthatNHBCisnotresponsibleforobtainingand/orimplementingand/orproviding
anypermits,licencesorapprovalsrequiredinconnectionwiththeBuildingWork,exceptforthosethatNHBCis
obligedtoobtain,implementand/orprovideinitscapacityasApprovedInspector.
CompliancewithBuildingRegulations
1.11 NHBCherebyinformstheClientthattheClientisentirelyresponsibleforensuringthattheBuildingWorkmeets
therequirementsoftheBuildingAct1984andtheBuildingRegulationsandtheClientacknowledgesthatthe
ServicesdonotincludeNHBCadvisingtheClientonhowtomeetthoserequirements.
1.12 NHBCherebyinformstheClientthattheissueofaFinalCertificateisnotarepresentation,warrantyorcertificate
thateachandeveryaspectoftheBuildingWorkmeetstherequirementsoftheBuildingAct1984andthe
BuildingRegulations.
Appendix - Terms and conditions of NHBC Building Control Services Limited
For builders and developers registered with NHBC page 25
AccessandHealthandSafety1.13 TheClientshallarrangeforNHBC’spersonneltohaveaccesstotheBuildingWorkatallreasonabletimesas
necessaryforNHBCtoprovidetheServices.1.14 NHBCshallensurethatitspersonnelcomplywiththeClient’sreasonableinstructionsinrelationtotheirconduct
whenvisitingthesiteoftheBuildingWork.1.15 TheClientshallensurethatHealthandSafetyRequirementsarecompliedwithatthesiteoftheBuildingWork.1.16 Withoutprejudicetoclauses1.14and1.15,NHBCreservestherighttodeclinetocarryoutorcompleteaninspection
visitfortheBuildingWorkwheninNHBC’sreasonableopiniontodosowouldputatriskthehealthand/orsafetyoftheNHBCemployeeassignedtocarryouttheinspection.
2. Documentation2.1 ThecopyrightinalldocumentspreparedbyNHBCinconnectionwiththeprovisionoftheServicesshallbelong
toNHBC.2.2 NHBCshallmaintainaccurateandreasonablydetailedrecordsofallworkdonebyNHBCintheprovisionofthe
Servicesforaperiodoffifteen(15)yearsfromthedateoftheapplicableFinalCertificate.
3. Fees and expenses3.1 NHBCshallchargefortheprovisionoftheServicesinaccordancewiththescaleofchargesmostrecentlynotified
totheClientfromtimetotime(orifnotsonotified,inaccordancewithitsmostrecentlypublishedratesofchargepublishedfromtimetotime)andinallcasessuchratesofchargeshallbequotedinUKpoundssterling,exclusiveofUKValuedAddedTaxbutinclusiveofthecostofdisbursements.
3.2 NHBCreservestherighttochargereasonableadditionalfees,whereadditionalsiteinspectionand/orperusalofdocumentsand/orattendanceatmeetingsinexcessofwhatisanticipatedbytheInspectionNotificationFrameworkdocumentare:
3.2.1 requestedbytheClient; 3.2.2necessitatedbyachangeinthescheduledprogrammeofworksfortheBuildingWork; 3.2.3necessitatedbyachangetothedesignoftheBuildingWork; 3.2.4necessitatedbytheClient’sDefault; 3.2.5necessitatedbyaneventofForceMajeure.3.3 TheClientshallpayNHBC’sinvoiceswithinthirty(30)daysofthedateoftheinvoice.3.4 IfanysumpayablebytheClientisnotpaidontheduedateitshallbepaidwithinterestontheoverdueamount
calculatedattherateof5%abovetheBankofEngland’sbaselendingrateforthewholeperiodfromthedateuponwhichthesumoughttohavebeenpaiduntilthedateofpayment(whetherbeforeorafteranyjudgement).
3.5 IfaContractisterminated,howsoeverarising,theClientshallpayNHBCanyinstalmentsofthechargesdueuptothedateofterminationandafairandreasonableproportionofthenextinstalmentofthechargesbasedontheamountoftheServicesprovidedpriortotermination.
4. Insurance4.1 NHBCshallmaintaininforceprofessionalindemnityinsuranceandpublicliabilityinsuranceinaccordancewithits
statutoryobligationsundertheBuildingAct1984.4.2 OntheClient’swrittenrequest,NHBCshallprovideevidencethattheseinsurancesarebeingproperlymaintained.4.3 WheretheBuildingWorkincludesthebuildingofresidentialdwellingsforsaleorlettingtheClientshallensurethat
eachresidentialdwellingunitbuiltiscoveredbyNHBC’sBuildmarknewhomewarrantyandinsurancecoverorbyasimilardesignatedwarrantyandinsurancecover.
5. Assignment and subcontracting5.1 NHBCshallnotassignanyContractandshallnotsubcontractanypartoftheServiceswithouttheClient’sprior
approval,whichshallnotbeunreasonablywithheldordelayed.5.2 TheClientshallnotassignthebenefitofanyContractwithoutNHBC’spriorwrittenapproval,whichshallnotbe
unreasonablywithheldordelayed.
Terms and conditions of NHBC Building Control Services Limited
6. Termination6.1 EitherpartymayatanytimebynoticeinwritingterminateaContractiftheotherpartycommitsamaterial
Defaultand:
6.1.1 thematerialDefaultiscapableofremedyandthepartyinDefaultshallhavefailedtoremedythematerial
Defaultwithintwentyone(21)daysofreceiptofawrittennoticespecifyingthematerialbreachandrequiring
itsremedy;
6.1.2thematerialDefaultisnotcapableofremedy.
6.2 EitherpartymayatanytimebynoticeinwritingterminateaContractasfromthedateofserviceofsuchnotice
iftheotherpartypassesaresolution,ortheCourtmakesanorderthattheotherpartyoritsparentcompanybe
woundup,orareceiver,manageroradministratoronbehalfofacreditorisappointedinrespectofthebusiness
oranypartthereofoftheotherpartyortheparentcompany,orcircumstancesarisewhichentitletheCourt
oracreditortoappointareceiver,manageroradministratororwhichentitletheCourtotherwisethanforthe
purposeofabonafidereconstructionoramalgamationtomakeawindinguporder,ortheotherpartyoritsparent
companyisunabletopayitsdebtsinexcessoftenthousandpounds(£10,000.00)withinthemeaningofSection
123oftheInsolvencyAct1986oranysimilareventoccursunderthelawofanyotherjurisdiction.
6.3 IfNHBCservesanoticeunderclause1.6,oraContractisterminated,howsoeverarising,NHBCshallnotifythe
relevantLocalAuthorityinwriting(withacopytotheClient)tocanceltherelevantInitialNoticeinwhichcase
NHBCshallceasetoberesponsibleforbuildingcontrolfortheBuildingWorkreferredtointheInitialNoticefrom
thedateofnotificationoftheLocalAuthority.
6.4 TheterminationofaContractshallnotprejudiceanyrights,dutiesorobligationsofeitherpartythatareexpressed
asorareintendedtobecontinuingafterterminationorwhichremaintobeperformedordischarged(asthecase
maybe)aftertermination.
7. Limitation and mitigation7.1 Neitherpartyexcludesorlimitsliabilitytotheotherpartyfordeathorpersonalinjurycausedbynegligence,orfor
liabilityarisingasaresultoffraud.
7.2 Subjectalwaystoclause7.1,NHBC’saggregateliabilitytotheClientforanyDefaultshallbelimitedinaccordance
withclauses7.3to7.5.
7.3 Withoutprejudicetoanyotherexclusionorlimitationofliability,foreachContracttheaggregateliabilityofNHBC
foranylossand/ordamageinrespectofanyDefaultshallbelimitedtothatproportionasitwouldbejustand
equitableforNHBCtopayhavingregardtotheextentofitsresponsibilityforthelossand/ordamageandonthe
assumptionsthat:
7.3.1 allotherparties(includingconsultants,advisors,contractors,subcontractorsandprojectmanagers)engaged
inconnectionwiththeBuildingWorkhaveprovidedcontractualundertakingsontermsnolessonerousthan
thoseintheContractinrespectoftheirobligationsinconnectionwiththeBuildingWork;
7.3.2therearenoexclusionsoforlimitationsofliabilitynorjointinsuranceorco-insuranceprovisionsagreed
betweentheClientandanyotherpartyreferredtointhisclauseandanysuchotherpartywhoisresponsible
toanyextentforthelossanddamageiscontractuallyliabletotheClientforthelossanddamage;
7.3.3allthepartiesreferredtointhisclausehavepaidtotheClientsuchproportionofthelossanddamagewhich
itwouldbejustandequitableforthemtopayhavingregardtotheextentoftheirresponsibilityfortheloss
anddamage.
7.4 Subjectalwaystoclause7.1,innoeventshalleitherpartybeliabletotheotherforanyoneormoreofthefollowing
thataresustainedorincurredbytheotherinconsequenceofaDefault;lossofprofit,lossofbusiness,lossof
revenue,lossorimpairmentofgoodwill,lossofopportunity,lossofanticipatedsavings,indirectlossordamage,
and/orconsequentiallossordamage.
Terms and conditions of NHBC Building Control Services Limited
For builders and developers registered with NHBC page 27
7.5 Withoutprejudicetoanyotherexclusionorlimitationofliability,foreachContractthetotalaggregateliabilityofNHBCforalllossand/ordamageinrespectofallDefaultsoccurringinconnectionwiththesameContractshallinnoeventexceedthelesserof:
7.5.1 tentimestheamountofthefeespayablefortheServicesundertheContract;or
7.5.2tenmillionpoundssterling(£10,000,000.00).
7.6 TheclientshallreferonlytoNHBC(andnottoindividualsengagedbyNHBC,includingpersonnelanddirectors)forredressiftheClientconsidersthattherehasbeenanybreachofaContractandtheClientagreesnottopursueanyclaimsincontract,tort(includingnegligence)orforbreachofstatutorydutyagainstanyindividualsworkingforNHBCincarryingoutitsobligationsunderaContractatanytimeandtheClientacknowledgesthatsuchindividualsareentitledtoenforcethistermofaContractpursuanttotheContracts(RightsofThirdParties)Act1999.
7.7 TheClientshalluseitsbestendeavourstomitigateanyandalllosses,costsandexpensesincurredasaresultofanyDefault.
8. Disputes and complaintsIftheClientisnotsatisfiedwithNHBC’sperformanceoftheServices,withoutprejudicetoitsotherrightsandremedies,theClientisentitledtorequestthatNHBCinvestigatethematterinaccordancewithNHBC’scomplaintshandlingprocedure,detailsofwhichcanbeobtainedonrequestorfromwww.nhbc.co.uk.
9. Rights of third partiesExceptasprovidedinclause7.6,thirdpartieshavenorightsundertheContracts(RightsofThirdParties)Act1999toenforcethetermsofanyContract,butthisdoesnotaffectanyrightorremedyofathirdpartywhichexistsorisavailableotherwisethanunderthatAct.
10. Force majeure
NeitherpartyshallbeindefaultoforliableforbreachordelayinperformanceofitsobligationsunderaContractorbeliabletomakepaymenttotheotherorotherwiseliableforanylossesordamageswhatsoeverarisingoutoftheprevention,hindranceordelayoftheperformanceofanyofitsobligationstotheextentthattheperformanceofsuchispreventedorhinderedbytheoccurrenceofanyeventofForceMajeure.
11. Confidentiality 11.1 ThepartiesshallkeepconfidentialallConfidentialInformationanduseallreasonableendeavourstopreventtheir
respectivepersonnel,agentsandcontractorsfrommakinganydisclosuretoanypersonofanyConfidentialInformation;savethattheforegoingobligationshallnotapplyto:
11.1.1 anymatterwhichthereceivingpartycandemonstrateisalreadygenerallyavailableandinthepublicdomainotherwisethanasaresultofabreachofthisclause11;
11.1.2anydisclosurebythereceivingpartywhichisrequiredbyanylaw(includinganyorderofacourtofcompetentjurisdiction),anyParliamentaryobligation,ortherulesofanystockexchangeorgovernmentalorregulatoryauthorityhavingtheforceoflaw;
11.1.3anydisclosurebythereceivingpartyofinformationthatisalreadylawfullyinthepossessionofthereceivingparty,priortoitsdisclosurebythedisclosingparty.
12. NoticesUnlessotherwiseagreed,anynoticeorrequestrequiredorpermittedtobegivenunderorinconnectionwithaContractshallbegivenintheEnglishlanguageinwritingbyprepaidregisteredorfirst-classmail,orfacsimiletotherecipientatitsaddressassetoutintherelevantInitialNoticeortosuchotheraddressoraddresseeasmayhavethereforebeenfurnishedinwritingbytherecipienttothesendingpartyinaccordancewiththisclause.
13. Law and jurisdiction13.1 EachContractshallbegovernedbyandconstruedinaccordancewiththelawsofEnglandandWales.
13.2 IntheeventoflitigationarisingoutoforinconnectionwithaContracttheCourtsofEnglandandWalesshallhaveexclusivejurisdictiontosettleanyClaim,differenceorDispute(includingset-offsandcounterclaims)arisingoutoforinrelationtoit.
Terms and conditions of NHBC Building Control Services Limited
14. WaiverThefailureofeitherpartyatanytimetoenforceanyprovisionsofaContractshallinnowayaffectitsrighttorequirecompleteperformancebyeitherpartyofallitsobligationsunderaContract,norshallthewaiverofanybreachofanyprovisionbetakenorheldtobeawaiverofanypastorsubsequentbreachofanyprovisionortobeawaiveroftheprovisionitself.
15. Set offNHBCmaywithoutnoticetotheClientcombine,consolidateormergealloranyoftheliabilitiesoftheClienttoNHBCandmaysetoffortransferanysumsfromtimetotimeowedbytheClienttoNHBCinortowardsthesatisfactionofanyofthoseliabilities.
Terms and conditions of NHBC Building Control Services Limited
For builders and developers registered with NHBC page 29
Part 3 Defined words and expressions
Approved InspectorShallhavethemeaninggiventotheexpression‘ApprovedInspector’intheBuildingAct1984andtheregulationsmadepursuanttothatAct,includingtheBuilding(ApprovedInspectorsetc.)Regulations2010(asamended);
Associate Anyperson,firmorcompanywhoatanytimeissubjecttoanysubstantialdegree,whetherdirectorindirect,tothesameownershipmanagementinfluenceorcontrolasyou;
Building RegulationsMeanstheBuildingRegulations2010(asamended);
Building WorkMeansthebuildingworkreferredtoinanInitialNotice;
ClientMeanstheperson,firmorcompanythathasrequestedthatNHBCactasApprovedInspectorandreferredtoasthe‘personintendingtocarryouttheworks’inanInitialNotice;
Confidential InformationMeans(i)allinformationdesignatedassuchbyeitherpartyinwriting;and(ii)allotherinformationwhichrelatestothebusiness,affairs,products,BuildingWork,tradesecrets,knowhow,personnel,customers,suppliersoraffiliates(includinginthecaseofNHBC,theNationalHouse-BuildingCouncilanditssubsidiaries)ofeitherparty;and(iii)informationwhichmayreasonablyberegardedastheconfidentialinformationofthedisclosingpartyoritsaffiliates;and(iv)data,includingdata,databases,reportsandanalysespreparedbyoronbehalfofNHBC;
ContractIsdefinedinPart1,paragraph5,undertheheading‘Introduction’;
DefaultMeansanybreachoftheobligationsofeitherPartyunderaContractoranydefault,act,omission,negligenceorstatementofeitherPartyinrelationtothesubjectmatterofaContractandinrespectofwhichthePartyisliabletotheotherParty;
Final CertificateShallhavethemeaninggiventotheexpression‘FinalCertificate’,intheBuildingAct1984andtheregulationsmadepursuanttothatAct,includingtheBuilding(ApprovedInspectorsetc.)Regulations2010(asamended);
Force MajeuereMeansanycauseaffectingtheperformancebyaPartyofitsobligationsarisingfromacts,events,omissions,happeningsornon-happeningsbeyonditsreasonablecontrolincluding(butwithoutlimitingthegeneralitythereof)emergencygovernmentalregulations,fire,explosion,lightning,storm,tempest,flood,burstingoroverflowingofwatertanks,apparatusorpipes,earthquakes,anydisaster,war,civilwarorarmedconflict,actsorthreatsofterrorism,nuclear,chemicalorbiologicalcontamination,pressurewavescausedbyaircraft,riotorcivilcommotion,failureinwholeorinpartbyastatutoryundertaker,utilitycompany,localauthorityorotherlikebodytocarryoutworksorprovideservices,anyaccidentallossordamagetotheparties’premises,oranyroadservicingthosepremises,anyfailureorshortageofpower,fuelortransport,anyblockadeorembargo;providedthatanysucheventisbeyondthereasonablecontrolofthepartyclaimingreliefanddoesnotarisefromanyact,omission,negligenceorwilfuldefaultofthatparty;
Terms and conditions of NHBC Building Control Services Limited
Health and Safety RequirementsMeanseachandeveryoneoftheClient’slegaldutiesapplicabletothehealthand/orsafetyofpersonsvisitingthesiteoftheBuildingWork,whichareapplicableonthedateordatesonwhichNHBCpersonnelarevisitingthesiteoftheBuildingWork;
Initial NoticeShallhavethemeaninggiventotheexpression‘InitialNotice’,intheBuildingAct1984andtheregulationsmadepursuanttothatAct,includingtheBuilding(ApprovedInspectorsetc.)Regulations2010(asamended);
NHBC CompanyAnycompanywithinthesamegroupofcompaniesasNationalHouse-BuildingCouncil,includingNHBCBuildingControlServicesLimitedandNHBCServicesLimited;
Party or PartiesMeanstheClientand/orNHBC;
ServicesMeanstheprovisionbyNHBCoftheservicesofanApprovedInspector.
For builders and developers registered with NHBC page 31
NHBC, NHBC House, Davy Avenue, Knowlhill, Milton Keynes, Bucks MK5 8FPTel: 0344 633 1000 Fax: 01908 747255 www.nhbc.co.uk
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